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Q. Steve has received a stock tip from Monica. Monica has told him that XYZ corp. will increase in value by 100%. Steve believes that Monica has a 25% chance of being correct. If Monica is incorrect, Steve expects the value of XYZ corp. will fall by 50%. Illustrate what is Steve's expected utility from buying $1,000 worth of XYZ corp. stock? Steve's utility of income is Should Steve purchase the stock?
Q. Fiona requires a minimum level of consumption, a threshold, to derive additional utility: U(X, Z) is 0 if X + Z = 5 also is X + Z otherwise. Draw Fiona's indifference curves.
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Write down a formula that express the marginal product of labor in the short run as a function of the amount of labor used.
Distinguish between the crowding-out effect also the Ricardo-Barro effect. Elucidate how are the two effects related
Assume the U.S. government implements a policy that achieves the savings rate needed to achieve the golden rule level of capital.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
Assume which the United States presently both produces kumquats and imports them.
A new law requires that all construction workers in your area belong to a labor union. Will this shift the labor supply curve, demand curve if both in home construction.
How can the issue, perspective, concept or model enhance and enrich understanding of International Economics.
Using your understanding of the financial system, the demand for money, banking and the money provide, interest and spending, the stock market, interest and investment.
A firm has developed a new product for which it has a registered trademark.
Would you advocate monetary restraint or stimulus for today's economy
Explain how will this event affect the equilibrium price and quantity of Florida oranges.
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