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Which assumption(s) allow(s) us to draw in difference curves? A) the Assumptions are cardinal measurement and cardinal ranking B) The assumptions are rank ability and completeness C) The assumption is that the more we have of a good, the less we are willing to give up to get even more of it D) The assumptions are free disposal and more is better
Explain how much will your firm's total revenues (revenue from both products) change if you increase the price of good X by 1 percent.
Evalute the probability that the company A defaults during the next year assuming that the CDS is priced in a way that makes the expected profit from selling the CDS as zero, and assuming that default probabilities do not vary during the 5 years.
Supply is given by the equation P=10+0.05Q. Demand is given by the equation P=600-0.05Q. Calculate the price and quantity at which the price elasticity of demand is equal to -1. How might you describe that point?
Firms A and B are duopolist producers of widgets. The cost function for producing widgets is C(Q) = Q2, with marginal cost MC = 2Q. The market demand function for widgets is Qd = 40 − 0.5P , where Q measures thousands of widgets per year. What are th..
Bleacher tickets for the game were sold out and many fans would have attended if tickets were available? What is the main rationing mechanism to allocate tickets for the game?
An Investment has the following cash flow series where interest is 8 percent. Determine the present worth of the series. Determine the future worth of the series at the end of year 8. Find the worth of the series at the end of year 2.
Suppose that Home in a two-sector (i.e., agriculture and manufacturing) specific-factors model has a comparative advantage in manufacturing. If Home were to open up to trade, will Home’s workers be better off, worse off, or are we unable to say the i..
After looking at some reports, you come to the conclusion that when price is 2, quantity is 1, and when price is 6 quantity is 9. Using the midpoint formula, what is the elasticity of this curve over the range provided. a. 5/8 b. 5/4 c. 8/5 d. 2 ..
q1. a good example of an oligopoly market structure is the airline industry. there are not many airlines in the
Suppose you have 5 stocks. In the past week they have changed in the following way: +5,1,+2,3,2. For each of the value functions from the previous problem, determine what the optimal way to bracket stocks into a portfolio to maximize the value.
Suppose the banking market in Richmond area consists of five banks that each has 15 percent of the market and five more banks that each has 5 percent of the market. Calculate the measure of monopoly power.
Which of the problems in the construction of the CPI might be illustrated by each of the following situations?
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