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Suppose you are the owner of any type of hypothetical start-up business. Suppose your total revenue is currently increasing when you use more inputs (materials, labor, machines, etc). Do you think you are maximizing the total profit in this case?
Shannon purchases a bond for $1,142.38. The bond matures in 3 years, and she will redeem it at its face value of $1,200. Interest premiums are paid annually. If Shannon will earn a yield of 7%/year compounded yearly, what is the bond interest rate?
One container requires 2 days in fabrication time. Setup times are negligible. If policy variable for unforeseen circumstances is 10 %, how many containers should management authorize for lens replenishment system.
If price controls are initiated, we would expect that
In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in form of currency (and thus two-thirds as bank deposits). Banks hold a third of their deposits in reserve. What are the reserve-deposit ratio, the currency-d..
The following equation represents the weekly demand that a local theater faces. Determine the profit maximizing ticket price for the theater. What is the price elasticity of its demand at this price? What is the elasticity of its demand with respect ..
If all firms, existing and potential new entrants face decreasing industry costs in the long run under perfect competition, the industry supply curve will:
Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and push up real GDP in the short eun. In fact, however, neither real GDP nor the price level changes significantly as a result o..
A decrease in consumer spending can be expected to shift the
A Caribbean cruise line has purchased a new cruise ship for $509,397 and expects to realize a net revenue of $190,000.00 each year for the next 10 years. The estimated salvage value of the ship at the end of its useful life of 10 years is $52,000. As..
Lotteries and expected utility. An expected utility maximizing decision maker declares that he prefers a lottery that pays $5 and $10 with equal probability to a lottery that pays $10 with probability 3 4 , and $0 with probability 1 4 . Which would t..
Presently the bond is priced to yield a return of 5% per year. Illustrate what is the bond's current market price.
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
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