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The enrollment in a course offered by the College of Business is random and is described by the following probability distribution: there is a 9% chance of 18 students, 22% chance of having 28 students, 34% chance of having 38 students, and otherwise there are 49 students. Suppose it costs the university $6200 to offer a section of a class (regardless of the number of students enrolled - so this is a "fixed cost") and tuition is $340 per student per class. What is the expected profit or loss for the University on this class?
what is Y = C(Y,T) + G + I(r)
Assume that the economy is characterized by the following structural equations: C = 160 + 0.6 (4 - T) I = 150; G = 150; T = 100. a) Determine the equilibrium output level
Q. Describe the Keynes motivation? Keynes' motivation: In good times, when Y is high (above its trend), national income is high (above it trend). Consumers will take this opp
Using production possibility frontiers, and indifference curves for Argentina and Brazil, illustrate and explain the movement of both countries to the free-trade equilibrium patter
full overview as-ad model
factors affecting national income
what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?
Explain whether, the following statements are TRUE, FALSE or UNCERTAIN. Briefly justify your answer. (i) The circular flow shows how real resources and financial payments flow
In the short run, the discrepancy between actual and expected price level causes changes in output and employment. But in the long run, if all other things remain constant, the hig
Explain why P=MC in the short-run equilibrium of the perfectly competitive firm, whereas in the long-run equilibrium P=MC=AC.
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