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a) Managers will maximize the values of firms by making decisions that maximize………. In every single time period, so long as cost and revenue conditions in each period are.
b) When current output has the effect of increasing future costs, the level of output that maximizes the value of the firm will be……….. (smaller, larger) than the level of output that maximizes profit in single period.
c) When current output has a positive effect on future profit, the level of output that maximizes the value of the firm will be………. (small, larger) than the level of output that maximizes profit in the current period.
Describe the objectives involved in the management of a bank's overall liquidity position and the costs to the bank of poor liquidity management. In your discussion, identify the major sources of demand on a bank's liquidity position, including reser..
q. how to calculate marginal revenue from demand?a.if the marginal propensity to save is 0.05 how large is the
In a fixed exchange rate system, how do countries address the problem of currency market pressures that threaten to lower or raise the value of their currency?
A man pays $160 a year for a life insurance policy with a coverage of $145,000 payable to his survivor upon his death. The probability that he will live through the year is 0.9992. Supply the probability table for this problem. (In this case the outc..
The president of a small industry has been complaining to the controller about raising labor also material costs.
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child’s 5th birthday and the last deposit being made on the 15th birthday. Then, starting on the child’s 18th bi..
Explain how you imagine the invention of cheap electric cars would affect the demand for gasoline? Why? Which determinant of demand or supply would be affected? Show graphically with before and after curves on the same axes.
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
Why is aggregate demand curve downward sloping? (Interest-rate effect, foreign purchases effect and real-balances effect be able to explain logic behind each of these) What are the determinants (shifters) of AD curve. Be able to determine the equilib..
Find and plot the SAC and SAVC curves. For this function, the SMC curve is given by SMC(q) = 0.2q +10. Include this curve in your diagram for part b. Write the equation for the firm’s short-run supply curve and indicate it in the above graph
According to tournament theory:
A competitive advantage furthermore earns a life span income of $6 million moreover the non-steroid user earns $1 million.
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