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Suppose you own a movie theater and most of your costs (the film rental, security, the land rental, etc.) are independent of how many people show up. What is likely to be the point elasticity of demand at the price you decide to charge?
Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are ?selling but buyers do not. Buyers know that there is a 5050?% chance of getting a? "lemon", a low quality used car. A high qu..
Where Q is the firm’s annual output, K is the firm’s capital input and L is the firm’s labor input. The price per unit of capital is pk = 10000 and the price per unit of labor is pl = 5000. Find the levels of capital and labor input that maximize the..
Create a flyer for your annual festival to distribute in print form throughout your community. Be sure the flyer is colorful, attractive, easily understandable to people with varying reading abilities, and appropriately detailed without being too inf..
In an interview with Daron Acemoglu, he says "the hot money which was floating through Turkey has stopped after FED's declaration that we are going to give much more attention on monetary policy". Basically I know some fundamental things like monetar..
Suppose you are visiting the local Big Y supermarket to purchase groceries. At the grocery, you see an advertisement for a store rewards card. You decide to sign up for the card, in spite of the fact that you had only planned to buy $47 worth of groc..
Demand and supply of Apple iPhone and factors that affect the demand and supply sides of the market.
Discuss with reasons the effect of marking to market cash flows and dividend uncertainty on the no-arbitrage window in the context of stock index futures arbitrage.
We have learned that the demand for money is a negative function of the nominal interest rate. Explain why it is the nominal and not the real interest rate that matters.
say you are the manager of a perfectly competitive firm selling a product. your business is making a loss because total
Suppose a bank has 100 million dollars of assets to invest. It can either invest in risky or safe loans. Safe loans will be worth $105 M in one year with certainty. Risky loans will be worth either $70 M or $130 M in one year, each with equal probabi..
Assume that a local bank sells two services-- checking accounts and ATM card services. Mr. Donethat is willing to pay $8 a month for the bank to service his checking account, and $10 a month for unlimited use of his ATM card. Ms. If the bank is unab..
If the company hires an incompetent president to run the company. He has the opportunity to introduce his idea for kids toys but his idea failed. He keep reducing the price of the products and eventually give out free products. Is it a good idea to g..
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