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Your firm faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 percent chance that your revenues will be $500,000. Your costs are also uncertain because the prices of your supplies fluctuate considerably. You forecast a 40 percent chance that your costs will be $400,000 and a 60 percent chance that your costs will be $250,000. Use Excel to set up a decision tree for your profit forecast (it does not matter whether costs or revenues come first). How many possible profit outcomes do you have? What is your expected profit?
Fixed costs exist only in:
If you had the power of the President, Congress, and the Federal Reserve, what would you do to stimulate the U.S. economy which is barely growing?
q.postcard bangalore. hearts set on joining economy globally as indian it workers are brushing up on their
What is the best practices frontier? How does this relate to competitive advantage? Explain why rent seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents?
illustrate what can you determine about the market for wheat.
How do the buyer's returns compare with the method of payment, and how do they compare with single versus multiple bidders.
What is opportunity cost of cheese in France at 2 kilograms to Germany 1 kilogram? Which country France or Germany has comparative advantage in cars at France .25 and Germany .50 output per hours worked? And cheese France 2 kilograms, Germany 1 kilog..
If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.
Using our best data-based guesses about real-world elasticity, the demand for loanable funds curve is probably rather ______________ and the effects of crowding out are likely to be ___________. The theory of Ricardian equivalence
Is it ever morally acceptable to use lethal force (ex. pressure cooker bomb) against as civilian who is oppressing you politically and economically but is not life threatening your life? why or why not?
If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
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