When your neighbor's dog barks all night long, this is an example of a negative externality

Jose consumes wallets (q1 ) and a composite of other goods (q2 ). The price of wallets is p1 and the price of other goods is p2 = 1

Jose's utility from wallets depends also on his income—with a higher income, he values a wallet more because he has more to put inside it! His utility is given by the equation U(q1,q2 ) = q1Yq2 Derive Jose's demand for wallets.

Which of the following is true of standard economic analysis?

A. It characterizes a firm as a black box that transforms inputs to outputs. B. It applies basic economic tools to examine the effects of managerial decisions. C. It focuses on the internal architecture of a firm. D. It characterizes a firm as an organization that generates economic growth.