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Suppose a bank issued credit cards over the Internet at a fixed interest rate to all approved applicants-for example, at 9.9 percent. Explain why this bank would face an adverse selection problem. How might the bank solve this problem? Would your solution make some customers unhappy?
q1. you have an opportunity to invest in a new plant. the fixed costs are 100000 per year. the marginal cost of
Suppose you are the main negotiator between your company and retailers carrying your company's line of dairy products. Your company is attempting to introduce a new brand of Greek yogurt, and it is your responsibility to negotiate agreement between y..
Explain the theoretical way to finance local public goods at an efficient level. Why is it so difficult to produce an efficient level of public good provision?
Please describe how an union may behave by strategically exploiting Marshall's 4 rules.
Suppose that 8000 (i.e 8 units of one thousand) construction permits are expected to be issued in 2010. What would be the point estimate of Phoenix lumber Company’s sales for 2010?
Compare and contrast consumer behavior of Hispanic, African American, and Asian American households. Provide support for your responses in 200 words.
What is the rate of return of any security? How is it different from the coupon rate or yield to maturity? Briefly describe the four types of credit market instruments. Provide one example of each type of instrument. What are the similarities and dif..
You expect one-third of your customers to be high value, willing to pay $9 for your product, and the other two-thirds to be low value customers willing to pay o
Suppose the U.S. dollar interest rate is 3%, while the interest rate in the United Kingdom is 6%. Your friend thinks he can convert his dollars
The term "globalization" is increasingly being used in the study of international relations and international political economy. Increasingly, also, there are debates surrounding the definition of the term and the extent of relevance in the global ec..
Is it necessary for the business owner to be, at the same time , the manager of a business?
Midwestern power companies generate much of their electricity by burning coal. Tall smokestacks, required because of concerns about local pollution, carry the sulfurous smoke high into the atmosphere. Impose regulations on the power companies that wo..
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