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Suppose the marginal cost of production for a company is $6 at its current production levels. Suppose the price elasticity of demand is constant at -2 between prices of $10 to $15, if current prices are $10, is the company pricing at the correct optimal level? If not, should it increase or decrease prices and to what level?
The securitization process reduces the total amount of credit risk embedded in the underlying mortgages, attract investors with different risk appetites, and give home buyers easier access to credit. Each time a new security is created during the sec..
Given the following regression equation with t-statistics in parentheses: Salary = 566,400 + 71,928 Goals + 20,403 Assists + 98,430 All-Star (3.45) (2.96) (3.5) (1.30)R2 = 0.95Salary = NHL Salary in $Goals = Number of career goals Assists = Number of..
In the long-run, fiscal policy impacts the supply side of the economy. Why do we ignore these effects in the short-run?
q1. it some respects karl marx could be thought of as one of the last of the classical economists. analyze this
Elucidate how each of the following people would talk about scarcity and trade-offs. The President of the United States and the leader of a developing nation.
A college student is buying a new car, which costs $16,500 plus 8% sales tax. The title, license, and registration fees are $650. The dealer offers her a financing program that starts with a small monthly payment, and the payments will gradually incr..
Incentive plans mean that:
Suppose a consumer maximizes the utility function U=ln(xy) subject to the budget constraint 4x + 2y = 12. Find the consumption bundle (x*,y*) that maximizes utility for the consumer.
If firms in the pizza industry are earning negative economic profits, which of the following will most likely occur in the future? a. Some firms will exit the market. b. The economic profits of the firms in the industry will rise. c. The market price..
Suppose the chartered banks decide to greatly reduce the availability of student loans that are guaranteed against default by the Canadian government. What would you expect to happen to the demand for credit cards by students?
q. 1. continue to read chapter 4 of your text book that deals with demand analysis. every assignment ought to answer in
Ken and Daniel always eat miso soup and sushi in exact proportions – one miso per twosushi. They throw away any extra soup or sushi as it would not give them any pleasure. Draw the Edgeworth box for Ken and Daniel. Please put Ken at the origin and Da..
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