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Grades on a final exam in Economics are normally distributed with a mean of 71 and a standard deviation of 11.
A. What is the probability that a randomly selected student will receive a score greater than 80?
B. What is the probability that a randomly selected student will score less than 60 and fail the exam?
C. If the top 10% of scores receive a grade of "A", what is the minimum score needed to get an "A"?
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
What is the efficient production for this firm?
You have your eyes on a new automobile costing $25,000. If you wrote a check for the $25,000, you could drive off in your new car. However, you don’t have it and must finance $20,000 through the dealership at 15%/year/month over a 5-year period. What..
In the early 1990’s, New Jersey and Pennsylvania both reformed their automobile insurance systems so that citizens could opt for either a less-expensive policy that did not allow people to sue if they got into accidents or a more-expensive policy tha..
q. a firm in a purely competitive business is currently producing a 1000 unitday at a total cost of 450. if the firm
Under the doctrine of respondent superior:
The Milwaukee Brewers are playing their archrival the Chicago Cubs. Bleacher tickets for the game were sold out and many fans would have attended if tickets were available. Did the Brewers use the optimum pricing policy? Explain. If not, explain. Wha..
Manufacturer A is starting to make Gismos at an initial production cost of $95 for the first unit and has been lowering the cost with a learning rate of 79 percent. Manufacturer B also started this year with an initial production cost of $288/unit wi..
Suppose that Bill, a resident of the U.S., buys software from a company in Japan. Explain why and in what direction this changes U.S. net exports and U.S. net capital outflow.
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
Illustrate what happens when a consumer decides to save and reduce thier spending of consumer goods. Does this affect the supply of money, demand of money or the intrest rate.
Suppose a competitive rm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C (Q ) = 10Q + (Q 2/160). The marginal cost is given by MC = 10 + (Q/80).
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