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A bond has semiannual interest payments at a nominal annual rate of 12%. It has a life of 10 years and a face value of $5000. If it is currently selling for $4270, what is the effective interest rate? (Answer: 15.4%)
In the framework of an oligopoly, what strategy can work like a silent form of cooperation?
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.5P, and the marginal cost of production is $150. Determine the optimal number of units to put in..
Suppose that a firm’s fixed proportion production function is given by q = min(5k,10l). Calculate the firm’s long-run total, average, and marginal cost functions. Suppose that k is fixed at 10 in the short run. Calculate the firm’s short-run total, a..
What point on the graph is most likely to result from the introduction of technological improvements in bicycle assembly, and successful publicity campaigns by the government on the virtues of bicycling to work.
Why does the short run Aggregate Supply Curve slope upward? Why does the long run Aggregate Supply Curve a vertical line at potential GDP? Why is there a difference between the long run and the short run when looking at the Aggregate Supply curve?
q.assume that in a certain region there is a single firm producing chocolates nestlex. in this region there is a
Discuss your understanding of the seeming conflict between economic growths versus equity. Specifically, does the Congress or a section of the Congress promote economic growth without proper attention to achieving equity - a fundamental goal of our s..
Why is it so important for a business to know about inflation and deflation? What do these terms mean to a business and a consumer? What would be the effect on each of these during a period of inflation?
Explain why each of the following factors influence the own price elasticity of demand for a comodity
In class we worked through the trade example where Home had a comparative advantage in cheese (alc /alw
Which do you believe is more important for a firm’s financial efficiency and success: economies of scale or the learning curve?
Raytheon is producing an air-to-air missile. The cost of the 500th missile is estimated to be $300,000 and the learning curve is 88%. What is the estimated cost of the 600th missile? What is the total cost of the lot of missiles from unit 601 to unit..
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