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If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?
Revenue increases by 10%
Revenue increases by 5%
Revenue decreases by 9%
Revenue decreases by 18%
Suppose you are receiving a large shipment of Gizmos. The manufacturing standards provide that 1% of Gizmos turn out defective. You randomly select a sample of n = 25 from each lot and return the shipment if more than 2 are found defective. The proba..
You plan to withdraw equal annual amounts on your sixty-first, sixty-second, seventieth birthdays. How much will be your annual withdrawal? b. On your sixty-fifth birthday, you decide to withdraw the entire amount remaining. How much do you withdra..
Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
Consider a 2 × 2 two-player zero-sum game in which the possible outcomes for Player 1 are win (payoff = 1) or lose (payoff = -1). The win probabilities corresponding to each of the four action pairs are UL : 1/3 UR : 2/3 DL : 3/4 DR : 1/4 a) (2 point..
The market demand for another product you are considering selling is Q(p) = 100 ? (1)p and as the 2. only producer of this product your production costs would be C(Q) = 40Q. You learn of a second firm wishing to enter this market. If you were to perf..
Also the economy has G = $1100, I = $404, and XN = $15. Unemployment in the economy is currently 5.2% and inflation is 0.1%
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
Twenty-seven amendments have been added to the U.S. Constitution. Obviously, all are important, in their own way. However, you will select three amendments, and in a minimum of three paragraphs, you will discuss why you believe each of these amendmen..
We know that GDP has four components: consumption (C), investment (I), government purchases (G) and net exports (NX). If we let Y stand for GDP
What is a monopolist? Is the product unique or there are no close substitutes. Discuss What type(s) of decision does the monopolist make about pricing and the quantity of output to offer in the market? Can the monopolist determine the level of output..
In which of the following situations would you prefer borrowing?
Explain briefly why deflation leads to mortgage defaults.
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