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Suppose that you can own a car wash and that its total cost function is C= 20 + 2Q + .3Q^2 where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed.
A. what is the optimal number of cars to wash per hour?
Suppose that the Mexican Peso is trading at 10 pesos per dollar, the interest rate in the US is 5% and the interest rate in Mexico is 4%. What must happen to the exchange rate in order for the interest rate parity condition to hold?
Bobby is the only man standing next to exactly one handsome man. 4. Clinton is the only man not standing next to exactly one scarred man. Who is fair, handsome and unscarred?
Explain why net exports and net capital outflow are always equal. Explain why higher real interest rates lead to lower net capital outflow.
q.specify how each of the following international transactions is entered into the u.s. balance of payments with
borrow 1000 at t=0. Make exact interest only payments at the end of each year for 4 years and at the end of the 4th year repay the entire principal in addition to the last interest payment. borrow 10000 at t=0. Pay a principal payment each year of 25..
Management charges higher highly rates in the winter, when its average occupancy rate is 85 percent. Explain can this policy be consistent with profit maximization.
You are being given data on supply also demand for the whole marketplace also are being asked illustrate what effect that has on you as a small part of that marketplace.
How could ABC use currency futures to hedge its position and what is the risk of hedging with currency futures.
As the number of workers at each factory increases, which factory will experience diminishing returns first.
Then, in the year after the 10 payments are made, you will receive 10 annual payments of $500 each. Your personal discount rate is 7.5%. Should you purchase the insurance product?
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
In a market research study conducted by a local winery on white wine preference, the following results were found. Of a sample of 500 men, 120 preferred white wine and of a sample of 500 women, 210 preferred white wine. What do you conclude at ? = .0..
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