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Question: Bluezuma, a scooter company, plans to develop two products: an electrical bike and an electric scooter. The electric bike will invest 90 million dollars, and the electric scooter will take an investment of 120 million dollars. The chance of a blockbuster, moderate or weak success of any of these products is 20%, 60%, and 20%, respectively. If the electrical bike is a blockbuster success, it will earn a profit of 120 million dollars, and the scooter will earn 150 million dollars. If they are a moderate success, they will earn $100 million (bike) and $120 million (scooter), respectively. In the weakest scenario, both will earn 80 million dollars each.
Explain two reasons why Monopolistic competition is less efficient than Perfect Competition?
Consider the same economy as in exercise 7, but suppose that we now have y = $380, d = 0.75 and K = $150. Why will the bank be willing to extend loans in case?
Discuss Increased government spending to fight recessions, Reducing federal government's discretionary powers and Zero-inflation target.
The potential for conflict is greatest where group members are younger and turnover is high.
Why are AR and MR curves downward sloping in monopolistic completion - What are the two objectives of practicing price discrimination
suppose that two players are playing the following game.nbsp player 1 can choose either top or bottom and player 2 can
If the price falls to $70 per share, what is the remaining margin?If the maintenance margin is 30%, will she receive a margin call?
The probability of getting ill is 25%. The utility function is U(W)= 3.2W ; U(W)=W2 , where W=wealth; log= logarithm base 10. Compute the expected wealth, expected utility (use up to 4 decimal places) and expected loss.
Suppose that you are managing the forex bureau of a bank that faces a perfectly competitive market comprising of 18 identical commercial banks. Suppose, further
What is an example of a price-elastic product? Explain why the product is price elastic.
Why are these two groups of people important when assessing the health of the economy? in 5 sentences
During the Great Depression, the US economy experienced a falling price level and declining real GDP. Using an AD-AS diagram, graphically illustrate and explain how this transpired.
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