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Suppose a linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the debt ratio and the profit margin. Based on past bankruptcy experience, the linear probability model is estimated as:
PDi = 0.18 (debt ratio) + 0.35 (profit margin)
You know a particular firm has a debt ratio of 35 percent and a probability of default of 8 percent. Calculate the firm's profit margin.
Determine how a policy will change social welfare, changes in individual utility for high-income individuals are weighted more heavily.
Given a closed economy without a government sector, modify the IS-LM model by the assumption that saving and investment are identical (i.e. equal under all circumstances and not merely in equilibrium) and answer the following: What is the level of..
What happens to price and quantity when supply and demand change at the same time?
many americans feel that their jobs at home should be protected and that free trade should be limited. however global
Discuss non-price competition within the industry. Describe the bargaining power of the company's suppliers and buyers. Describe the long-run goals of company.
write 400-600 words that respond to the following questions with your thoughts ideas and comments. this will be the
1.what impact do natural resources have on economic growth? will it be possible for a country with few natural
What number of workers appears to be most efficient in terms of pizza product per worker - What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid $500 per week?
Describe a situation involving ergonomics that could be cited as a violation of the General Duty Clause. Explain where you would locate the four elements needed to prove such a violation and how your situation meets those four elements.
The price charged to consumers, the average total cost of production and the efficiency of the market outcome
(1) Suppose a store is located in the middle of Main Street, which is one mile long. Marginal transportation cost is given by t=$80 per mile round trip. The average production cost of the product sold is given by c=$32. Customers value each un..
For each of following changes, show/explain the effect on DEMAND CURVE and state what will take place to market equilibrium price and quantity (in the short run).
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