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Suppose that stock prices on the NYSE can be modeled using the normal distribution, with mean $30 and standard deviation $9.50.
a) What is the probability that a randomly selected stock costs between $25 and $40?
b) What is the 1st quartile for these stocks?
c) What is the probability that the mean of a random sample of 30 such stocks exceeds $33?
Suppose the economy's production function is Y = A(300N – N^2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G. what are the real wage, employment, and output?
Why can re be multiple steady states for a given. What is maximum decit compatible with a steady state.
Suppose that a biotech firm makes diagnostic tests and has a fixed-proportions production function in which one unit of output (diagnostic test) is produced using one worker and two units of capital (machines). Draw 3 isoquants for this production f..
Consider the Classical model. Which of the following situations/shocks would generate higher real wages and less labor?
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
Due to the global economic slowdown, we were benefiting from relatively low oil prices. But because of the instability of the Middle East and the slowing.
The volatility of the present floating exchange rate regime presents a conundrum for international business. Exchange rate movements are difficult to predict and yet their movements can have a major impact on the competitive position of business. Wha..
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
Critics argue that countries relying on primary exports will experience problems of fluctuating and declining terms of trade. Explain the theory and evidence behind these arguments, and how these problems can reduce the gains from primary export t..
Suppose for a particular production function that If the price of capital is $5 per unit and the price of labor is $125 per unit, at the cost minimizing combination of capital and labor, the firm should employ
Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million. Suppose the entire economy contains $5000 worth of one-dollar bills. If people fail to..
q.as manager of city racquet club you must determine the best price to charge for locker rentals. suppose the marginal
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