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In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable?
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
A tariff is a tax on imports. Use the model of the excise tax to explain why domestic firms ask their government to "protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad ..
You own a golf course in Florida and you need to determine how many golf carts you need to buy to maximize profits. What is the user cost of capital and what is it expressed in? Now suppose the (local) government with all their financial shortfalls e..
Assume company X deposits 100,000 in cash in Commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20%, Bank A, by itself, can initially increase the money supply by a maximum of?
How can makers of flat-panel TVs earn economic profits during the first few months after the introduction of new models? What economic forces result in the dissipation of economic profits earned by manufacturers of flat-panel TVs?
Is it advantageous for all countries to utilize cheaper labor or does importing your goods.
A profit-maximizing monopoly has pricing under the following conditions: the price charged for goods produced is $15, the intersection of the marginal-revenue and marginal-cost curves occurs where output is 105 units and marginal revenue is $10, and ..
Start with your factors of production on page 34 and then briefly describe whether these resources were allocated efficiently. Think about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. Are yo..
The Sherman Anti-Trust Act. If competition decreases in a certain industry. Under perfect competition. The Clayton-Anti Trust Act
q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his
Read The Iliad as if you are an archaeologist who has just discovered an ancient text which gives you a window into the ancient world. You hold this fragile treasure in your hands, and begin to read, knowing that you must suspend your modern perspect..
Cash versus Stock Payment [LO3] Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flows by $2 million indefinitely. What is the cost..
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