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1. What are the perfect market assumptions?
2. Explain whether the following statements are true or false. In each case, provide justi?cation for your answer:
3. Write down the CAPM formula. What are the economy-wide inputs and what are the ?rm-speci?c inputs?
Assume Hailey's Utility Function is U = x^2 y . The price of X is $8 per unit and the price of Y is $2 per unit. Her income is currently $240 / month. Determine her utility maximizing quantities of x and y. Suppose the price of X goes down to $4 per ..
The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________.
Consumer demand for oil—including oil in the form of both gasoline and home heating oil—is fairly inelastic in the short run and more elastic in the long run. In the short run, will a shift in the supply of oil (say, caused by a disruption in Mideast..
Regarding our nation’s debt situation and the impact of entitlements like Social Security and Medicare, consider our Saint Leo core values of responsible stewardship and community. What responsibility do we have as a society to help the elderly and d..
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change -two quarters and a dime. No other combination of coins will make anything come out of the machine. Does Mike have convex preferen..
Which of the following best characterizes changes in the U.S. long-run aggregate supply curve during the past 50 years (taking into account that the economy has acquired better technology)?
Which of the following are benefits created by the immigrants?
How would the following circumstances affect workers’ ability to earn higher wages by forming a labor union? Do these conditions increase the union wage premium, decrease it, leave it unchanged, or is the effect ambiguous?
The Financial Advisor is a weekly column in the local newspaper. "I need a new car that I will keep for 5 years. I have three options. I can (A) pay $19,999 now, (B) make monthly payments for a 6% 5-year loan with 0% down, or (C) make lease payments ..
Determine its level of profit. (b) Suppose that a fixed costs increase to $75. Verify that this change in fixed costs does not affect the firm's optimal output.
In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
?Assume you are an analyst with an online university say UOP. The Admissions Director (AD) wants to determine the optimum number of students for each ECO561 class. You are provided with the following data: Tuition is $1250 per student. what is the ne..
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