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A. One roommate says that he buys stock only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earnings ratio of these companies compares to the price-earnings ratio of other companies? What might be the disadvantage of buying stock in these companies?
B. Another roommates says he only buys stock in companies that are cheap, which he measures by a low price-earnings ratio. How did you suppose the earnings prospects of these companies compare to those of other companies? What might be the disadvantage of buying stock in these companies?
Compute the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic. Find the point at which point elasticity is equal to -1.
Among which of the following will cause an increase in producer surplus. Which of the following causes a shortage of a good.
Illustrate what happens to wheat farmers and the market for wheat when university agronomists discovers a new wheta hybrid that is more productive than existing varieties? show graphically.
The widget Industry in Any town is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given.
How does the government decide on the amount of pollution to allow? What are the potential costs and benefits associated with the regulation of pollution? What are the potential problems associated with employing outright regulation to deal with poll..
Government increases taxes by 50 billion and increase transfer payments by 50 billion illustrate what would happen to aggregate demand.
Write down the profit maximization problem for the rm.
What effect would a depreciation of the U.S dollar, relative to the Chinese Yuan, have on both our exports to China and our imports from China?
Some, like Santander, have quietly expanded into or business lines; its consumer-credit division is Europe's biggest car financier. What is next.
In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
What is the probability that the cost will be between $300 and $400? (to 4 decimals) d.If the cost to a patient is in the lower 8% of charges for this medical service, what was the cost of this patient’s emergency room visit?
Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
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