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Q1. Old Economy Traders opened an account to short sell 1,300 shares of Internet Dreams at $46 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $46 to $59, and the stock has paid a dividend of $3.50 per share.
What is the remaining margin in the account? (Omit the "tiny_mce_markerquot; sign in your response.) Q2. My utility function depends on the two commodities. When and, my demand functions are such that I spend all my income on commodity 2 but never buy any of commodity 1, no matter how large or small my income may be. Does it follow that is an economic "bad" for me? If so, explain why. If not, give an alternative explanation.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
Describe the Schumpeterian notion of "creative destruction"
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
What happens to the demand for Sara's sweatshirts in long run. In long run, what happens to Sara's economic profit.
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