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You are considering acquiring a firm rumored to have developed an effective gene therapy for diabetes. The value of the firm depends on this therapy. If the therapy is effective, the firm is worth $100 per share; otherwise, the firm is worth no more than $20 per share. Your company's management and marketing strengths should increase the share price by at least 50 percent in either case. You must make an offer for the firm now, before the results of clinical trials are in. The current owner of the firm will sell for the right price. Make an offer for the firm. Explain why you think your offer makes sense.
When enacting fiscal policy, the form such policies take is often at issue - should we enact fiscal policy by lowering taxes or increasing spending? There are many points of view on either side of the spectrum. How do tax cuts affect GDP? Do tax cuts..
Social responsibility other than to make as much money for their stockholders as possible. Explain why you agree or disagree with such a statement.
A city engineer and economic development director of Buffalo are evaluating two sites for construction of a multipurpose sports arena. At the downtown site, the city already owns enough land for the arena. However, the land for construction of a park..
It is $16 trillion today. Does this mean that the average American is twice as well off today than in 1996? Why or why not?
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
Which of the following is a payroll tax?
Your car gets 9.5L/100 km at 90 km per hour (kph) and 11.5 L/100 km at 110 kph. At what speed should you make an 800 km trip: a.) If gas cost $0.90 per litre and your time is worth $18/hour? b.) If gas costs $1.00 per litre and your time is worth $12..
Assume the money supply is $800, the velocity of money is 7, and the price level is $2. Using the quantity theory of money: Determine the level of real output. Determine the level of nominal output.
Find mathematically and graphically the Equilibrium price and Quantity? If the price is 10 Riyal, what kind of surplus we will have and how much is it? If the equilibrium price increased by one Riyal, what will be the quantity demanded?
A firm can produce any quantity of good X with the following cost structure: TC = 450,000 + 20Q, where Q measures units of output. Suppose the profit-maximizing output level you calculated to answer part A is split evenly between two firms, each with..
Junior collects baseball cards. He owns one Felix Hernandez card that sells in most shops for $15. He is interested in buying a different Felix card that also sells for $15. According to behavioral economics:
Find an article on firm's production and cost from a major news media by providing title, date, source and summary of the article. Explain how this article relates to firm production and cost.
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