Question: Please Help! Question 3 1 pts A household has a wealth endowment of $5 and can use this to either consume (C) or save (S).


Please Help!
Question 3 1 pts A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Savings earn interest of 26% and consumption yields marginal benefit as follows: 1st $1 has MB $1.76, 2nd $1 has MB $1.58, 3rd $1 has MB 1.41, 4th $1 has MB 1.31, and 5th $1 has MB of $1.22. To maximize the sum of earnings on savings and benefit from consumption, the household should pick C-2 O C=3 O C = 4 OC -5 Question 4 1 pts Consider the MB schedule described for the household in question 3, and the MR schedule described for the firm in question 1. If both the firm and household now face an interest rate of 44%, then the demand for funds is and the supply of funds is $3: $3 O $3: $2 O $2:$2 $2:$3 Question 1 1 pts A firm uses capital to produce revenue and the marginal revenue from the first 5 units of capital is as follows: 1st unit has MR $2.58, 2nd unit has MR 1.85, 3rd unit has MR 1.53, 4th unit has MR 1.22, and 5th unit has MR 1.04. If the interest rate is 25%, what is the optimal amount of capital for this firm to borrow? 2 04 05
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