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The elasticity of demand for Dave's Famous is Pizza is 2.6. Dave is considering raising pizza prices by 20%. Is this a good idea? What will happen to his sales? His total revenue? Explain.
Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $900. a. In the table provided below, calculate and enter either the interest rate that the bond would yi ...
Question: Consider an exchange economy with two prominent leaders: Romney and Bernanke. Each get utility from destroying jobs, J; and from power, P. Their utility functions are: URomney = ln(P) + 2 ln(J) UBernanke = 2ln( ...
In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares ...
If a firm's total cost function is given byT C= 115,000Q-500Q2+Q3, what range of output does the firm have economies of scale?
How to perform a regression for barrels sold vs. US Pop. Write the estimated regression equation? The barrels sold are the dependent variables while US Pop is the independent variable.
The researchers stated that there were no significant differences in the baseline characteristics of the intervention and control groups. Are these groups heterogeneous or homogeneous at the beginning of the study? Why i ...
Suppose the production function for a firm is given by: q=4L 0.75 K 0.25 . If the firm currently has 10 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRT ...
Each entry-level software programmer in Palo Alto, California, has either high or low ability. All potential employers value a high-ability worker at $12,000 per month and a low-ability worker at $6,000. The supply of hi ...
1) Let Z be a standard normal random variable with mean = 0 and standard deviation = 1. Us the normal table to find the following answers. a) P(0 b) P(-1.22 c) Find the value Z 0 such that P(0 0 )= 0.4901. 2) On a typic ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As