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You have two types of buyers for your product. The first type values your product at $10; the second values it at $6. Forty percent of buyers are of the first type ($10 value); 60% are of the second type ($6 value). What price maximizes your expected profit?
a. $10
b. $6
c. $7.60
d. $8
What is the dollar rate of return on a 10,000 pound deposit held in a British bank for a year when the British interest rate (annual) is 10 percent, and the exchange rate is $1.50 per pound at the beginning of the year
Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 5%. Households deposit $20,000 in currency into the bank. How much excess reserves does the bank now have
suppose the economy is in equilibrium and the equilibrium real GDP is 1500 billions. Suppose further that the MCP is 0,8 if the government wants to increase the real GDP to 2000 billions , by how much should the government increase /decrease.
Howard Bowen is a large-scale cotton farmer. The land and machinery that he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4...
interest rates and saving with constant elasticity of substitution utility. a country?srepresentative individual has a
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Suppose that businesses buy a total of $100 billion of the following resources labor, land, capital, and entrepreneurial ability from households, if the households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest
The market for carrots is comprised of two segments: fresh market carrots, which have excellent, uniform color and a small core, and processing carrots, which are larger than fresh market carrots but still have good flavor
The price earnings ratio for each stock is determined through dividing the value of a share of stock by the earnings per share reported by the firm for the most recent 4-quarters.
Briefly describe the strategy
Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by MC = 10 + (Q/80).
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