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IQ test scores of students are normally distributed with mean μ=100 and standard deviation σ=10.
What is the 33th percentile of the IQ scores?
For a randomly chosen student, what is the probability that his or her IQ score is less than 85?
A firm’s stockholders expect an 18% rate of return, and there is $22M in common stock and retained earnings. The ?rm has $9M in loans at an average rate of 8%. The firm has raised $14M by selling bonds at an average rate of 4%. What is the firm’s cos..
adam smith rejected utility as a foundation for value. he illustrates this rejection in his famous diamonds and water
Why is competitive advantage desirable? What does having it allow a company to do?
From an economics perspective, would you prefer your residential water supply to be provided by a monopolist or a purely competitive firm?
Podunk, Inc. has been making widgets by hand (using no machinery at all) for years. Their production function has been q=0.9L. Recently, they purchased high-tech machines to aid the workers. Unfortunately, none of the workers can figure out how to us..
All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:
A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (i.e., other firms do not follow), its demand curve takes the form Q = 82 − 8P. Develop demand schedules for each alternativ..
(a) What is the aggregate supply function for umbrella? What is the equilibrium price and quantity sold? (b) The domestic industry lobbies for protection and Congress agrees to input a $3 tariff on foreign umbrellas. What is the new U.S. price for ..
The Production Possibilities Model is one of the first Economic Models students learn about. Please explain what the mode teaches us. Please explain each of the 4 assumptions of the model. Please explain Productive Efficiency and how it relates to th..
Sometimes stores have sales that limit the quantity you can purchase at the sale price. If you buy more than the limit, you pay the full price. Assume that your local grocery store is having a sale on yogurt where the first 5 are on sale for $1.00 pe..
A market consisting of many firms, low barriers to entry, some control over price, but considerable non-price competition is characteristic of. A market consisting of a few firms producing similar products with significant barriers to entry is charac..
If a firm has created value, is it also always able to capture that value? How does a firm create value and then what must it be able to do to capture that value? In your answer, provide an example of a firm that has been able to create value. Then d..
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