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Fashion Buyers
A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average. Passing on a highly demanded design means lots of unsold merchandise and missing out on profits that are $300,000 on average. So long as he is more than 40% confident that the design will be successful, carrying the design will minimize expected decision error costs. Why might he opt to carry designs only if he is more than, say, 50% confident of success?
Describe how the asset-price channel of monetary policy impacts real estate markets. How might adopting triple-bottom-line accounting influence the competitiveness of U.S. firms in foreign markets? Why has the black/white wage gap narrowed over the p..
There are two firms in an in an industry. Let q1 and q2 be the two firms in an industry and Q= q1 + q2 be the total output. The inverse demand in the industry if P (Q)= 45 – Q. The cost function for each firm is C(qi) = 9qi. Assume oligopolistic comp..
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 150 items per hour. If you assign three ..
A certain manufacturer can produce f(x, y) = 10(6^(x^3) + y^2 ) units of goods by utilizing x units of labor and y units of capital. Which of the following gives the marginal productivity of labor when x = 10 and y = 20 ?
Looking at both the schedules of supply and demand, as well as the graph of the demand and supply curve for Maine Lobsters, what is the equilibrium price of lobsters and equilibrium quantity of lobsters demanded and supplied at that price?
A city manager wants to invest a sum of money in an account that pays 6% annual interest to cover the monthly operating costs of the city's water treatment plant for the next 6 years. The monthly operating costs for the plant are projected to be $19,..
q1. what are the advantages and disadvantages of austerity?q2. leadbelly co. sells pencils in a perfectly competitive
Why is there a relationship between personal disposable income and consumers expenditure?
What is each fisherman's profit-maximizing output now. Find the market price and the total output.
These forecasts for the Internet creating “perfectly competitive” markets were based on the competitive model we have presented in this chapter. Do you think the Internet has helped create more competitive markets or less? Why?
The recent recession seems to be ending, the number of people with jobs is expanding, and it appears that wage levels are beginning to increase. Based on market changes, what changes would you anticipate experiencing in your firm’s revenue and cost c..
Sandy is planning her consumption over five periods during which she expects her income to be 4, 10, 16, 12 and 8. What is Sandy's permanent income? What is Sandy's marginal propensity to consume out of a temporary increase that boosts first period i..
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