4. Sebastian has the following utility function over consumption today (c1) and consumption tomorrow (c2): U(c1, c2) = ln(c1) + bln(c2) where 0 < b < 1 and ln denotes the natural logarithm Let p1 denote the price of c1 and p2 denote the price of c2. Assume that Sebastian’s income is Y. Derive Sebastian’s Marshallian demand functions for consumption today (c1) and consumption tomorrow (c2). What happens to c1 and c2 as b approaches 0?

The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?

You have recently been made a department head of the new regional office. in getting to know your departmental staff, you have noticed that one of your inexperienced employees is not following through on assigned tasks. she is enthused about her new job and wants to get ahead in the organization. which alternative represents the most effective leadership style: a. discuss the lack of follow-through with her and explore thealternative ways this problem can be solved. b. specify what she must do to complete the tasks but incorporate any suggestions she may have. c. define the steps necessary for her to complete the assigned tasks and monitor her performance frequently. d. let her know about the lack of follow-through and give hermore time to improve her performance.