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Question: Suppose that Penny Chairs has three media options: radio, TV, and ads in Furniture World (an industry publication). The table below provides information related to the costs, exposure values (how many people see the ad and is typically derived from market research studies), and limitaons on the allowable number of ads in each medium desired by the firm. The company would like to achieve a total exposure value of at least 60,000 Radio $500 2,000 0 15 TV $2,000 4,000 10 No limit Furniture World $200 2,700 6 12 A. How many of each type of ad should be placed to minimize the cost of achieving the minimum required total exposure. Which constraints are binding? Why?
Do you think Fed independence (from the legislative and executive branches of government) helps or hinders the achievement of low and stable price inflation? Why?
Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
The company is interested in knowing the number of units it must have to recover its total costs.
Show that a mixed strategy that assigns a positive probability to a dominated pure strategy is dominated (by another mixed strategy that assigns zero probability to that dominated pure strategy). This is supply chain economics question about game the..
Plot on a single diagram the relationship between inflation and unemployment, measuring inflation on the vertical axis and unemployment on the horizontal axis
Asymmetric information is a problem in many markets, such as the used car market, the insurance markets, and the credit markets. Choose one of these three markets, and using some of the concepts you learned from this module, discuss the questions bel..
Using the demand and supply figures in Table 1 below, construct a suitably labeled demand and supply diagram, and clearly identify the equilibrium price and qua
Monetary and fiscal policies are the main macroeconomic tools by which government can influence the performance of an economy?
Write a short essay on the business strategies that were used by Wal-Mart to make the company the largest retailer in the world. As part of your answer, make sure that discuss whether you believe that these strategies will continue to work as well in..
The fact that a consumer is not required to buy the goods that a given firm produces, as well as the fact that the consumer might want the goods a firm produces, but may choose to buy from other firms instead.
What additional programs did the Fed create and implement to facilitate its role as leader of last resort? What was the primary purpose of these new programs?
A proposed project has indefinite life. The initial cost of the project is $70,000. There will be a onetime investment of $100,000 at the end of Year 6, and an operation cost of $10,000 per year from the end of Year 10 through infinity. If the intere..
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