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Mikey cuts hair to pay for his tuition for college. Unfortunately, the cost of a haircut in his town hasn't risen in years, and neither has his hourly wage. To make matters worse, the cover charge at his favourite club, Stages, keeps rising. He asks you to lend him $600, promising to repay you with interest at the end of one year. You try to convince him to stay home and do his work, but he doesn't waiver. You decide to charge Mikey 5% interest, the same as the fixed rate on your student loan. At the end of the year, he repays you principal plus interest in full.
Find the precise expected real rate using the CPI figures from parts (a) and (b) (correct to 2 decimal places ie. 4.75%). What would be the expected real interest rate if you never considered that prices could change during the year?
The demand curve for a product is given by P=60-3Qd, where P is the price of the product and Qd is the quantity demanded for the product.
The technology is now expanding so that road use can be priced through computer. A computer in surface of the road picks up a signal from your car and automatically charges you for use of road.
Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?
If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?
How do costs play into your everyday life For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate? Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)
During the country's current economic malaise, along with that of our local economy, what can individuals and businesses do to help get by financially, get a job, or promote economic activity?
minimum wage legislation increases costs of production (and thus product prices) and creates an excess supply (unemployment) of unskilled labor.
To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers · To what extent would increased government involvement with regard to safety affect the behavior of manufacturer · ..
BudgetSurplus: The amount by which government revenues exceedgovernment expenditures in a given year. PublicDebt: The total accumulation of the FederalGovernment's total deficits and surpluses which have occurredthrough time.
The company estimates the probability of no damage to be 0.60, the proof damage between $0 and $10,000 to be 0.25, and the probability of damage between $10,000 and $25,000 to be 0.12. If the company wants to make a profit of $200 above the expect..
Given the following payoff matrix, (a) What is the best (optimal) strategy for each firm? (b) Would firm A using the low price as a threat if firm B enters? (c) What could firm A do to make its threat credible without building excess capacity
what is the full definition of imports and exports tell me all about international trade and domestic trade. what are the advantages and disadvantages of imports and exports of goods what are the problems of exports and importsof goods
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