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What was the expected return on Columbus's expedition, assuming that he had a 50 percent chance of discovering valuables worth $1 million, a 25 percent chance of bringing home only $100,000, and a 25 percent chance of sinking?
What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How? How the government have responded to the crisis both in monetary policies ..
Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..
Explain how does the subsidy affect consumer surplus, producer surplus, tax revenue, and total surplus. Does a subsidy lead to a deadweight loss. Explain
You run a small business that uses both capital and labor to produce your output. The machinery (capital) has a marginal cost equal to $25 per hour and a marginal product equal to 50 units per hour. Assuming that is the only cost for labor, how many ..
You are standing in line. Think about what you would be doing if you are not in this line. The alternatives are infinite and computing the cost of them all is impossible. However, since you could only be doing one thing (not all of them) if you are n..
An airline estimates that the price elasticity of demand for business travelers (who travel on weekdays) is - 2, while the price elasticity of demand for vacation travelers (who travel on weekends) is - 5. If the airline price discriminates (and cost..
(a) To what degree is radio broadcasting a public good? (b) To what degree is a highway a public good?
When the fed raises the federal funds rate, eventually there is.
What is the criteria the firm would use to decide how much to produce and charge?
As a result of the subprime collapse, the demand for low -quality corporate bonds ________, the demand for high-quality Treasury bonds ________, and the risk sp
The quantity of pizzas demanded soared the following week from 1 pie an hour to 100 pies an hour. Illustrate what was price elasticity of demand for Domino's pizza.
European retailers utilize a wide variety of government regulations to restrict entry.
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