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1) Explain the relationship between risk aversion, internal interest rates, and the prices that people with different risk aversions would be willing to pay for the same stock.
2) Suppose you're in the market for a new sedan. If the car is a "lemon", it will be worth $15,000. If the car is a "peach", it will be worth $25,000.
a. If you think half the sedans on the lot are "lemons", what should you be willing to pay for a new sedan?
b. If you think 60% of the sedans on the lot are "lemons", what should you be willing to pay for a new sedan?
c. If you think 80% of the sedans on the lot are "lemons", what should you be willing to pay for a new sedan?
Write an introduction for your paper explaining what the topic is, why the topic in the article/video is important to you?
Q=aK+bL, where a and b are the coefficients of capital and labour respectively. Q refers to output, K refers to capital and L refers to labour. show that the marginal rate of substitution between capital and labour is MRTSKL=b/a
Derive the short-run cost function - Derive the total surplus and briefly explain how and why the prices differ under different market structures.
In 2013, Purell announced that the new chemical formula for its hand sanitizer was so effective that: "Just 1 squirt of Purell Advanced Hand Sanitizer kills as many germs as two squirts of any other national brand." If Purell succeeds in convincin..
What are some of the problems associated with capitalism which the American people have called upon government to address?
Suppose a computer virus disables the nation's automatic tellter machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more money on hand, increasing the deman for money.
Write Business Letter to top executives, officials etc. regarding an issue. Your Business Letter must convey a local issue/topic, and should address a specific audience that might address your concerns. Your audience should also be able to answer you..
Discuss most common style of leadership used by effective leaders of larger companies (Stage III and beyond) and explain why this style of leadership is used.
1. the absolute value of the short-run elasticity of demand for bread has been estimated to be 0.15. its long-run
Draw two diagrams, side by side with the money market diagram for Denmark on the left and the expected return in krone / exchange rate diagram on the right hand side.
network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users..
A number of stores offer film expanding as a service to their consumers. Assume that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 .
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