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It has been suggested that a profit maximizing firm should possess and master an information or knowledge set that includes among many things, the selling price of its output. Explain why this is necessary. Be specific.
Sally Stanford is buying an automobile that costs $12,000. She will pay $2000 immediately and the remaining $10,000 in four annual end-of-year principal payments of $2500 each
Barramundi Inc. stock is currently selling at $40 per share (its equilibrium price) provide that the risk free interest rate is 8% and the equilibrium risk premium on the market portfolio is 6%.
use the long-run model of a small open economy to illustrate graphically the impact of this decline in consumer confidence on the exchange rate and the trade balance.Assume the country starts from a position of trade balance.
The economy will contract or shrink if leakages exceed injections. Are you agree with this statement.
1. Draw the payoff matrix (note that Time Warner and District 6SW are the only ones in the market. 2. Based on the payoff matrix what recommendation would you give regarding whether Time Warner should maintain its current price or reduce it to $84..
What discount rate is most appropriate for net present value calculations of large-scale projects? Of small projects? Of the quantity of inventories to hold?
If the apple grower wants to see 6,000 bees kept, what is the value of the externality? What would have to happen for the socially optimal amount of bees to be kept?
Assume the price of product B, increases from $1 to $1.50. As a result, the quantity demanded of product "A increases from 500 to 600 a month. This indicates that the cross-price elasticity and relationship between the two products.
Joe Donaldson deposited $80,000 in his new business. Prepare all entries related to above transactions.
Draw the PPF. If new technology in computer production is invented and adopted, what will happen to the PPF. Find the opportunity cost of first 4 units of computer.
In addition, pi* is the central bank's target level of inflation , and b is some positive parameter. This rule states that the central bank raises the real interest rate above its long-run level when inflation is above its target and lower when it..
Find out the equilibrium price, the equilibrium quantity, the output supplied by each firm and the profit of the firm in the short run.
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