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A division manager is presented with two new project proposals. Both projects are projected to cost $60,000. Project 1 is predicted to have a 50% chance of generating $100,000 in revenue and a 50% chance of generating only $50,000 in revenue. Project 2 is predicted to have a 75% chance of generating $100,000 in revenue and a 25% chance of totally flopping and generating effectively no revenue.
If she is risk-averse, which of the two will she prefer? Why?
Find period 1 savings per person as a function of the real interest rate in the economy.
Construct a sketch of the choices in a) and c), by drawing the budget constraints, optimal choices and indifference curves through them in graph
A firm has a cost function of TC (q )=80+4q+2q2 and a marginal cost function of MC (q)=4+4q. At the given market price of $16, the firm is producing 3 units of output. What quantity of output should the firm produce in the long run?
You operate a delivery service in your local area, but you are thinking of expanding to another market. You're concerned that you might need to set different prices in the new market because the cost of gas might be much different.
Employers hire sociologist for all of the following reasons, except for:
(GAME THEORY) Consider two colonels A and B ruling two opposing armies. Each colonel has 120 soldiers in their armies and there are 6 battlefields. Suppose colonel A and B distributes their armies as follows; A : 20 20 20 20 20 20 B : 21 21 21 21 20 ..
The average fixed cost function is monotonically decreasing.The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum.
Suppose a ?rm’s cost function is given by C(Q) = Q^2 + 100 over the interval [0,10]. Sketch this function and then draw a secant line that connects the points 1 and 5. What is the range of this cost function? Is this function concave or convex? How d..
Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. America is skilled-labor abundant..
Describe the mean and the variability around the mean for the conditional distribution for a study time of 6.4 hours. Please help me better understand
Discuss the differences between formal and informal reports, can you describe what value such elements as documentation, page margins, headings, etc. add to the report?
Yesterday it paid a dividend of $3. What was the average annual growth rate of dividends for this firm?
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