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An entrepreneur is considering opening a coffee shop in downtown Cookeville. The building that he is considering will have a monthly lease payment of $3200 and basic utility costs of $600 per month.
AireAsia. AireAsia, headquartered in Kunming, China, needs US$25,000,000 for one year to finance working capital. The airline has two alternatives for borrowing Borrow US$25,000,000 in Eurodollars i
ACT Scores, A survey of 1000 students nationwide showed a mean ACT score of 21.4. A survey of 500 Ohio scores showed a mean of 20.8. If the poppulation standard deviation in each case is 3,
Argocy Associates a US based investment partnership, borrows €80.000.000 at a time when the exchange rate is $1,3460/€.The entire principal is to be repaid in three years, and interest is
A girl with a current wealth of Rs 50,000 who faces the prospect of a 25% chance of losing her Rs 26,000 jewellary.suppose her Von newmann-Morgensterm utility index is U(W)= ln(W).
Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front
Suppose a manufactrer estimates its marginal cost at $1,00 per pack, its own price elasticity at -2, and sets its price at $2,00. Average total cost per pack are expected to raise by $.60. What effe
a bakery operating in the short run has found that when the level of employment in its baking room was increased from 4 to 10,in increments of one, its corresponding levels of production of bread
A rich graduates of engineering program at your University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely.
You are the owner of a local honda dealership. Unlike other dealerships in the area, you take pride in your "no haggle" sales policy. Last year, your dealership earned record profits of $1.5 million
You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and that 60 percent of all tourists traveling to Florida by air
The market for carrots is comprised of two segments: fresh market carrots, which have excellent, uniform color and a small core, and processing carrots, which are larger than fresh market carrots bu
Do the same for x2. After, solve the consumer's optimization problem using the Lagrange multiplier method. Interpret the first-order conditions in terms of the slope of budget constraint and indiffe
Assuming no chnage in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A Does the new data reflect an increase i
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase? If your nominal income rose by 2.
the city council of collegeville receives a petition from students complaining about the high rents in town. As s result the council creates a price ceiling that is $100 below the equilibrium price.
Suppose the Fed buys $100 million Euros with Federal Reserve Notes and, at the same time, sells $100 million of U.S. government securities for cash in a domestic open market operation.
Suppose Chemical Bank makes a loan of $100,000 to Al. Al uses the loan to buy a house from Bob, and Bob deposits Al's check into his account at Citibank. Show what happens at each stage of this proc
In the state of California, rice growers burn their field stubble to sanitize their fields. The field burning causes serious air pollution. The alternative sanitizing method costs $150 per acre.
Suppose that the federal government's annual budget deficit is $250 billion and that the Fed's holdings of government securities increase by $10 billion over the year. How much of the deficit was mo
Suppose that a commercial bank sells $3 million in securities on the open market. Calculate the change in the bank's excess reserves when the required reserve ratio on checkable deposits is 14%.
Suppose that a bank currently has assets of $24,000 in reserves and $176,000 in loans and liabilities of $200,000 in deposits. If the required reserve ratio is 10%, what are the bank's required and
Suppose that following an oil embargo gas prices rise dramatically so that now business firms must take account of gas prices in their car rental decisions. Their demand for rental cars is now given
Suppose the government wishes to raise the equilibrium wage to $4 per hour by offering a subsidy to employers for each person hired. How much will this subsidy have to be What will the new equilibri
a broadcasting executive is reviewing the prospects for a new television series,according to her judement , the probability is 0.25 that the show will achieve a rating higher than 17.8, and the prob