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Explain the four steps of Box-Jenkin’s methods of forecasting.
Using Box-Jenkin’s four-step method, forecast the US quarterly GDP for the second quarter of 2015.
Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 fro..
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Choose a U.S. corporation and explain how the changes in real output in the economy (GDP), inflation and interest rates affected the company during the recession. Begin your memo by very briefly describing what goods and services the company sells. B..
Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
Graph a short-run situation where a big market team has lower profits at its profit maximizing level of attendance than a small market team has at its profit maximizing level of attendance. in your graph, be sure to identify the profit maximizing att..
Consider an economy with the following Cobb-Douglass production function: Derive the equation describing labor demand in this economy as a function of the real wage and capital. The economy has 27,000 units of capital and a labor force of 1000 worker..
In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would expect an..
Suppose Australia is a capital (K)-abundant country, and Sri-Lanka is a labor (L)-abundant country. Both produce labor and capital intensive goods with the same technology. Which of the two countries has a higher relative wage, w/r, before trade? Wou..
A company is trying to figure out the cheapest way to produce 36 toys. The company†TM s technology is given by:
Suppose you are a manager of a watch making firm in a competitive market. Your cost of production is given by C=200+2Q2 where Q is the level of output and C is the total cost.
Bob’s utility function is given by . 0.5 0.5 U = X Y Bob earns $400. The price of X is $2 and the price of Y is $4. a. What is Bob’s optimal consumption bundle before any price change? b. Suppose the price of X increases to $4. What does Bob consume ..
Illustrate what specific factors might have accounted for this event.
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