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Q1. A company selling widgets advertises through three types of media: print, television and internet. Recently the company has decided to increase its advertising budget by $100,000. In order to determine where the additional money should be spent, the company increased print advertising for a month by $5,000 and attracted 50 new customers. The following month, the print advertising was decreased back to its original level and television advertising was increased by $20,000 and attracted 175 new customers. In the third month, television advertising was decreased to its original level and internet advertising was increased by $2,500 and attracted 30 new customers.
1. Given this data, what can you say about where the $100,000 increase should go?
2. How would you check to determine if you made the correct decision? Q2. Suppose a company has a WACC of 10% and is considering a project that initially costs $40,000 and will return $15,000 after the first year, $20,000 after the second year and $10,000 after the third year. There are no additional returns or costs for this project.
1. What is the NPV of this project?
2. Should the company undertake the project?
Economist mark Edward the multiplier effect of Alaska trade to Japan another 600 million is added to the state economy for Japanese recovery, associated press and local wire June 2
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Two firms, producing an identical good, engage in price competition. The cost functions are c1 (y1) = 1:17y1 and c2 (y2) = 1:19y2, correspondingly. The demand function is D(p) = 80
WHAT ARE THE SOURCES OF MONOPOLY
Q. How much money can banks create? Does that mean that banks can create an unlimited amount of money? No the answer is no - it would require them to lend an unlimited amount o
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