Jason is an artist who wants to turn his art into a small business. he had the great idea to go to other hobby-based businesses in his community and give painting lessons to their clients. first, he went to a local stable and taught its boarders how to paint portraits of their horses. then, he went to a local dance studio and taught its patrons how to paint their dream dance costumes. based on the buzz created by his new business, several other local businesses want to hire jason. what is one area where he may struggle in managing his new business? a. he may get stuck in a market niche. b. he may lack the flexibility to adapt to changing market demands. c. he may have trouble managing all the money he will make from the start. d. he may lack the skills and experience to make good management decisions. e. he may focus too much on management and not enough on his great product ideas.

Overspeculation and a decrease in consumer confidence are both leading factors of: ?

An attorney came to work on a saturday. when he signed in, he was advised by the morning security guard employed by the building management that he must be out of the building by 5 p. m., when it closes. however, he stayed past 5 p. m. to complete a brief that had to be filed on monday morning. at 5: 15 p. m., the afternoon security guard set the locks on all the doors of the building and left. because she was in a hurry, she did not check the sign-in sheet to make sure that everyone had signed out, contrary to mandatory procedures. when the attorney tried to exit 15 minutes later, he discovered that the doors were all locked and could not be opened from the inside. he used his cell phone to call for , and a supervisor from the building arrived and let him out shortly thereafter. if the attorney sues the building management for false imprisonment, is he likely to win?

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?