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What is the purpose of a margin call?
A. to inform you that your margin loan is due and payable
B. to demand funds to increase your margin position
C. to let you know the amount of funds that are now available for you to borrow
D. to advise you that the interest rate on your loan has changed
E. to remind you of the upcoming monthly payment due on your margin loan
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals ..
On the horizontal axis, K/L represents capital (K) per work hour (L). On the vertical axis, Y/L represents output (Y) per work hour (L). 10. Refer to Figure 1. The curve becomes flatter as the amount of capital per work hour increases because of a. i..
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
Suppose a widget manufacturer has an infinitely substitute production function, q=3L+2K, given that MPL= 3, MPK= 2. If both the wage rate and rental rate are $10. What is the cost-minimizing combination of L and K to produce 60 units of output. How m..
Economists argue about the potential benefits and costs of diversification. For instance, while diversification can certainly help company to promote new products, at the same time through the merger of two firms it can be more expensive to develop c..
Let a monopolist face a demand function given by P(q) = 40-q and let the cost function be given by C(q) = 50 + q2. Calculate marginal revenue. What price will the monopolist charge, call that price P*? What is the average cost at the quantity of outp..
Which of the following will increase (shift) the demand curve for white flour, an "inferior" good?
Wolfe and Baker are the only two firms producing door stopers because of such a small market in their area. Both firms have a marginal cost (MC) of $8 and no fixed cost (FC = $0). The demand for door stopers is given by function P = 32 - Q, where P i..
Which of the following are true of a barter economy? Check all that apply.
The best way to organize your results is in the form of a table. Report the log-likelihood and pseudo R2 for the nonlinear models and the R2 and adjusted R2 for the linear model. Write the likelihood functions of logit model
A micro economist might study which of the following?
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