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Why is it incorrect to advertise up to the point that the last dollar of advertising expenditures generates another dollar of sales? What is the correct rule for the marginal advertising dollar?
analyze the impact on the consumer's demand of the following three policies under the assumption that the market price does not change.
What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8%? What would you pay for a $194,000 face value bond that matures in 15 years and pays $19,400 a year in interest if you wanted to..
Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.
Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 4 percent today, a two-year bond paying 5 percent today, a three-year bond paying 5.3 percent today, or a four-year bond paying 5.5 percent today,
What is the minimal wage that must be offered to Yumi for her to sign this new wage contract and what is Yumi's expected revenue when she works hard? What is Yumi's expected revenue when she does not work hard?
Identify and analyse the key sensitivity factors affecting this project. Explain using the accelerator principle why the demand for aircraft is so volatile.
1) Name a good with a negative externality. What is the external cost? Will a free market for this good provide too much or too little to be allocatively? how can the government ensure an optimal amount to the good is produced?
Considering the correlation of a company to the economy which would you chose: A company positively, negatively, or not correlated?
Calculate the elasticity of demand from point A to point B. Calculate the elasticity of demand from point C to point D. Calculate the elasticity of demand from point E to point F.
7, recent tax reforms make college tuition partially tax deductible for certain families. this should motivate more people to attend college. how will this higher demand for college education affect tuition prices how will it affect the cost of co..
What"s wrong with this way of thinking? “Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972
What is Cohort Effect? How to disentangle the "pure" effect of age from a birth cohort effect?
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