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In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable?
Always Round Tire finds the following cross elasticity:
Examine the impact on a small country following an outward flow of immigrants that decreases its labor force. Assume that land is specific to agriculture and capital is specific to manufacturing, while labor is free to move between the two sectors. A..
Canonical Decision Problem Susan Smart, a recent graduate of MIT, has decided to start her own business, Frill Less Internet Provider (FLIP). She is offering small businesses and residential customers Internet access, providing a fast and convenient ..
Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a ration..
Panther Hall is a college dorm with 100 residents who each have the identical demand function for a pleasant community room, given by the equation MB = 1000 – 9.95Q. The marginal cost of maintaining the community room is MC = 1500 + 5Q, where Q = squ..
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). Representative consumers have labor endowment of 1. So Ls must be less than 1. Write down the budget constraint of the representative consumer. Write down the maximizat..
What is the typical cause of positive serial correlation in business data?
q.watch the video titled fear the boom and bust. using the tools of macroeconomics identify the primary difference
Parking shortages are a perennial problem on many college campuses, while parking surpluses exist at most shopping malls (except, perhaps during the Christmas season). Explain and show graphically the two cases on separate diagrams. Describe and show..
In 2014, Coca-Cola announced that top executives would have bonuses linked to the company’s revenue from soft-drink sales. Explain whether the company’s annual profit will necessarily increase if the executives achieve the results necessary for bonus..
Larger companies like Toyota and VW will ultimately survive - they have a good deal of money and power to ride out the storm. Toyota is still a top seller - even with all the problems they have had and continue to have. Can you explain why? Why would..
what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?
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