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A bright OU student plans to win first prize in the Ohio University Scripps Innovation Challenge that began Jan 17 and ends March 13. He will invest his $10,000 winnings in a friend’s 5-year-old startup company and expects to gain 10% interest per year, compounded annually, based on contracts the firm has recently won. How much will his investment be worth at the end of 3 years when he graduates from OU?
Two firms, Wickedly Efficient Widgets (WEW) and Wildly Nepotistic Widgets (WNW), produce widgets with the same production function y =K^(1/2) L^(1/2), where K is the input of capital and L is the input of labor
Describe the effects of decrease in the population growth rate on the golden rule quantity of capital per worker and on the golden rule savings rate.
Home Interiors has net income of $248,000. The firm has decided to pay $160,000 of that income out to the shareholders. What is the firm's retention ratio? Art Supplies has a net income of $138,600. The firm has $1.25 million in assets and $500,000 i..
How cost variance calculated? What does it mean when it's negative? What does it mean when it's positive? When evaluating a work package with a negative cost variance.
Laura (of Luke and Laura’s Itty-Bitty Drink Umbrella Inc.) is trying to decide how many workers to hire. The Itty-Bitty Drink Umbrella production function is given by: Q = 6L^(1/3)K^(1/2). The price of output is p, the wage rate is w, and the rental ..
A firm has two production processes with the following marginal cost curves:
How have financial innovations increased the liquidity of home mortgages since the late 1970s? Has this increase in liquidity tended to increase or decrease the interest rate on home mortgages? Explain why.
If the market demand curve is Q = 100-p, what is the market price elasticity of demand? If the supply curve of individual firm is q = p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual..
elucidate what economic factors may influence such behavior
Suppose product demand is given by the column labeled D1. If the wage rate rises from $100 to $130, the firm will reduce the quantity of labor employed by _____ unit(s) Compared to an otherwise identical competitive firm, a firm with monopoly power w..
Explain the difference between adverse selections also moral hazard in insurance marketplaces.
The demand for cargo bikes in New Zealand is where I is average income in thousands (i.e. if average income is 50,000 I=50) a) Suppose Avanti decides to begin producing cargo bikes, and there are currently no other companies supplying the New Zealand..
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