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A consumer with utility function u(x) =√x wants to purchase full insurance from Company Z. However, he doesn't know how much the premium, Q, will be. It may be $10,000or $20,000 with equal probability. The consumer's wealth is $100,000 and the potentialloss is $25,000. How much is the consumer willing to pay to know with certainty whetherthe premium is $10,000?
Assuming that the perpetual inventory record is kept in dollars and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
When a best-selling book was first released in paperback, the Hercules Bookstore chain seized a profit opportunity by setting a selling price of $9 per book. With paperback demand given by P = 15 - .5Q, the chain enjoyed sales of Q = 12 thousand book..
In the class, we have discussed a set up of the Cournot competition with two firms and different marginal production costs.
In each year for the next 5 years, the costs are expected to increase by $75 per year, so that in the last year (year 6), the maintenance cost
"A firm with a demand curve that is inelastic at its current output level can always increase its profits by reducing its price."
Discuss how a business manager might use CPI statistics? Find the annual CPI index numbers for gasoline prices for the years of 1995, 2000, 2005, 2010 and 2015.
Illustrate what are the equilibrium values of the interest rate, price level, consumption and investment. What are the new short-run equilibrium values of the interest rate, price level, consumption and investment.
Keynesian economics and neoclassical economics have been challenging, attacking and refuting one another ever since his General Theory from 1936.
The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers. The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers. The GDP deflator and the CPI are equally good at refle..
If the store has a one day sale of $2.20 per burrito, what is Adam's consumer surplus?
How can you benefit from taking a management science course? What decisons do you think you can use a Linear Programming model to solve when you become a manager?
The shape of the long-run cost curve is determined by economies and diseconomies of scale. Contrast this curve with the short-run cost curve as it relates to increasing and diminishing marginal returns to labor.
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