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You are the manager of a firm that sells a "commodity" in a market that resembles perfect competition, and your cost function is C(Q) = 2Q + 3Q2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 70 percent chance the market price will be $200 and a 30 percent chance it will be $600.
a. Calculate the expected market price.
b. What output should you produce in order to maximize expected profits?
c. What are your expected profits?
Give the money multiplier and explain how the 3 different players impact the money multiplier and the money supply. Give 4 transmission mechanism and explain how each impacts the financial markets and the overall economy.
Suppose Alphonso's town raise the price of bus tickets from .50 to 1.00 and the price of burgers rises from 2 to 4. why is the opportunity cost of bus tickets unchanged? suppose Alphonso's weekly spending money increases from 10 to 20. how is his bud..
Explain how much government securities should be purchased/sold if an open market operation is undertaken
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Access and complete the "Eschatology Chart." Complete the chart according to the instructions provided in the chart resource. Define and explain eschatology. Define and explain the theology of hope as discussed in the readings.
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Examine two (2) arguments one for and one against raising the minimum wage, and discuss your findings. In view of the weak economy of the last several years, explain which of the four components of GDP had, or is having, the greatest positive impact ..
The effective e-commerce and CRM strategies, applications and services on both websites.Write a short report in APA (American Psychology Association) style on the findings of the above items 1 and 2 with appropriate comparison, contrast, and discu..
From the late 1970’s through 2000, the college wage premium increased rapidly. At the same time, the supply of college graduates to the labor market increased relative to the supply of high school graduates. What do these trends imply about the deman..
Suppose you are considering starting your own consulting firm. You estimate if that if you did not start the firm, your starting salary at a job would be $40,000/yr. The revenues from this firm are expected to be $1,500,000. Some of the expenses you ..
What is a trading bloc and a trade concentration ratio, and does it make sense that trade concentration ratios should be greater than +1?
A firm uses labor and capital to produce output according to the production function q=100KL, where L is the number of units of labor used and K is the number of machines. What is the marginal product of labor. What is the marginal product of capital..
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