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What role do financial markets play in the economy? Why do we, as macroeconomists, study them?
Profits University produces student credit hours(y) with two inputs:Professors' hours of work(P) and TA's hours of work(T) according to the production function:f(P,T)=10P^(1/2)*T^(1/4). Both inputs are variable. Suppose professors are paid $80 per..
Suppose the price elasticity of demand for vanity plates in your state is 0.60. The initial price is $20 and the initial quantity is 1,000 plates per week. Suppose the state increases the prices by 10%. Predict the new quantity per week and total ..
Suppose Tom and Jennifer placed $5,000 into a savings account that paid an interest rate of 6 percent. If the inflation rate was 4 percent over the year, what was the ex post real interest rate return
Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization and trade.
What do these costs have to do with the viability of large and small groups?
Harvey wanted to start his own business so he quit his job at Winona State University where he earned $98,000 a year. He figured his entrepreneurial talent to be worth $15,000 a year.
An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data: The price of the stock is $40. The strike price of the option is $40. The option matures in 3 months (t = 0.25).
There are various estimates for the amount of jobs saved by the federal government's stimulus plan the American Recovery & Reinvestment Act (ARRA) of 2009. (a) According to the Council of Economic Advisors' report from January 2010.
Are there any separating equilibria? Pooling equilibria? If so, what are they? Upon what do your answers depend? Explain using graphs.
What is the unit price at this oint of optimal demand?
Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return Assume as always that TC incl..
DaimlerChrysler has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshields for its new Jeep Liberty. If both you and your rival submit a low price.
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