The football coach at Midwestern university was given a 5 year employment contract that paid $225,000 the first year, and increased 8% uniform rate in each subsequent year. At the end of the first year the alumni demanded that he be fired.
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Suppose that due to whatever reason, reserve demand changes and you forecast the reserve demand to now be Rd = 270 - 30 iff. In order to keep the federal funds rate at target, what must the open market desk do? Be specific and show this developmen..
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The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 200 units of F produced sold for $3 per unit and the 500 units of C produced sold for $1 per unit. In 2007, the 300 units of F produced sold for $4 per unit..
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Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000, and her store made $120,000 in profits (not counting payment to her top manager). She suspec..
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Throughout the problem set, we assumed that net taxes do not depend on income (that is, net taxes are a lump sum). However, in reality, taxes do vary with income. Suppose Bodinia and Goldland are two economies that are exactly the same in every as..
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1. Find average cost and average for each of these total cost curves: a. TC = 10 + 2Q, b. TC = 5 + 3Q, c. TC = 20 - Q + 2Q2, 2.A firm's marginal cost of production is at $5 per unit, and its fixed costs are $20. Draw its total, average, and average..
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How much would you need to invest at 6% interest compounded quarterly on January 1, 2014 in order to accumulate $10,000 by December 31, 2016 2-Given cash flows for an investment of $5,800 at time "0", determine the rate of return to the accuracy of ..
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Suppose the inverse demand for a product is Q = ?P 1/2 + 10. Write the expression for the demand curve, i.e., P = f(Q). What kind of expression is this?
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Firm A has developed a new product and must now decide whether to install enough capacity to produce either one or two units of the product. It expects production costs (including capacity building) to be C(q) = 8q + q2 and it estimates demand for..
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Despite very low growth of GDP in 2008 and 2009, and still high unemployment rate of 9.5 percent in June 2010.
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A company is considering replacing a painting machine purchased 9 years ago for $700,000. It has a market value today of $40,000. The unit costs $350,000 annually to operate and maintain. A new unit can be purchased for $800,000 and will have annu..
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You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.
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