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Suppose a risk-neutral power plant needs 10,000 tons of coal for its operations next month. It is uncertain about the future price of coal. today it sells for $60 a ton but next month it could be $50 or $70 (with equal probability). How much would the power plant be willing to pay today for an option to buy a ton of coal next month at today's price? (Ignore discounting over the short period of a month)
Why all the balance of payments accounts be in surplus. What factors determine the demand for British pounds in foreign exchange markets.
What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? Discuss the impact of rational self-interest on each of the following decisions. Suppose you go to a restaurant and buy an e..
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
Describe a situation in which autocorrelation might be present and which of the three methods of detecting autocorrelation you would leverage. Explain your rationale. Describe what remedial measure you would take to address autocorrelation if it were..
The compressor is a key component in manufacturing both refrigerators and air-conditioners.
You have a gross income of $12029 in 2014. You filing status is single. You do not itemize deductions and you are allowed 1 exemption. What is your federal tax bill, assuming no phaseout of personal exemptions based on income?
Congress does not have enough votes to override a veto. Draw a tree for this game and ?nd the rollback equilibrium.
Describe the Discretionary and Non-discretionary Fiscal Policy you would advise
Explain why does MySpace attract so many visitors. Why does MySpace attract so many visitors.
1. For each of the following economic conditions, place an X in the table to indicate theappropriate range in the Aggregate Supply Curve
Drugs, Inc. recently received approval from the Food and Drug Administration for its new supplemental drug application for a 300-milligram tablet of an antiplatelet treatment. The company invested $170 thousand in the research and development fund fo..
q.review the biographies of each of the seven members of the board of governors. what can you say about the composition
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