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For the data, assume that the optimistic probability is 20%, the most likely is 50%, and the pessimistic is 30%.
(a) What is the expected value of the equivalent uniform annual cost?
(b ) Compute the expected value for the number of miles, and the corresponding equivalent uniform annual cost. (c ) Do the answers to (a) and (b) match? Why or why not?
The right demand shift results into an increase in equilibrium price. The price down of necessity goods results in increases of both demand and total revenue. The price down for long-run results in increases of both demand and total revenue.
Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. a. Given the change in interest rates, would you expect to pay..
The highway department expects the cost of maintenance for a piece of heavy construction equipment tp be $5000 in year , then increase to $5500 in year 2, and increase $500 annually till year 10. At interest rate 10% per year determine the present wo..
Suppose that Natasha's utility function is given by u(l) = I^0.5, where I represents annual income in thousands of dollars. Is Natasha risk loving, risk neutral, or risk averse? Explain, Draw a utility function over income u(I) tha describes a man wh..
If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would conclude:
Assume you own a computer retail store located near your campus (give the store any name you want). You have sold fewer PCs in recent years due to strong demand for macs among university students. You will write a sales letter to reach all student ho..
A firm with the ability to affect the price of its product:
How would you go about determining whether innovation and the incentives for innovation are becoming more important factors in the performance of firms and industries?
critically estimate the theory and empirical evidence on the optimality criterion for choosing an exchange rate regime.
Elucidate how should Microsoft market long distance telephone services in the new wireless telecommunications devices which also include Internet portals.
Foods Inc (FI) sells 5 million units per year of its only product (SuperFood) through a major retailer. SuperFoods’ retail price is $5 per unit which included a margin to the retailer of 20%. alculate SuperFoods’ per unit variable cost, Calculate Su..
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