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Calculate the best response function of each firm in terms of prices. Calculate the resulting equilibrium price quantity combination for each firm. Illustrate your answer with a suitable graph.
Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%.
How much money will you have at the end of one year? If you are saving to buy a stereo that currently sells for $1,050, will you have enough to buy it?
Property taxes in DeKalb County are roughly 2.66% of the purchase price every year. If you just bought a $100,000 home, what is the PV of all the future property tax payments?
What is the price of perpetuity that has a coupon of $50 per year and a yield to maturity of 2.5%? If the yield to maturity doubles to 5%, what will happen to its price?
If your required rate of return does not change, how much would you be willing to pay if this were a 20-year, annual payment, ordinary annuity instead of a perpetuity?
Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity. What is the bond's yield to maturity?
Is the financial adviser necessarily right? Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to maturity is 6%.
If he apportions some resources to each, then he can produce any linear combination of chickens and potatoes that lies between those extreme points.
How does a price ceiling undermine the rationing function of market-determined prices? How could rationing coupons insure that consumers with the highest values.
Does the environmental policy in part (c) produce a socially efficient level of emissions (E*)? If not, show in a new MAC/MD diagram the socially efficient emissions level.
Explain and compute the unregulated, competitive economy equilibrium level of emissions (EC). Show this equilibrium on the diagram.
Calculate the profit maximizing output and price of the monopolist. Calculate the resulting profit. Calculate the resulting optimal output, and price of the monopolist as well as government's tax reve
she forgoes $30,000 per year that she could make as a teacher. If her total revenue equals $140,000, that means her accounting profit is ________ and her economic profit is ________.
Compute the price elasticity of demand for paint and show your calculations. Decide whether the demand for paint is elastic, unitary elastic, or inelastic.
The economy has seen the unemployment rate increase from 6 percent to 9.5 percent. Given the above, what would you predict about the overall direction of the economy? Explain your answer.
What would this more complete analysis say about the desirability of this investment? Carefully detail your assumptions and analysis.
C 5 $500 billion 1 0.9Y and the government wants to stimulate the economy. What will the cumulative AD shift be for?
A certain production process employs two inputs--labor (L) and raw materials (R). Find the number of units of input L that maximizes the average product function.
What is the point cross elasticity of demand with respect to Old Town pinball machines for the values of the independent variables given in part (i)?
What is the store's arc elasticity of demand for charcoal? What is the point price elasticity of demand at prices of RM8,000?
The other does not, the adopting company will eam a.profit of $2billion and the other will lose $1 billion. If you were a decision maker at Honda, would you make side-impact airbags standard equipment
Contrast this to the real world and why individual firms might experience different cost curves and different profits.
Describe an industry that would meet the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.
If the EU and the United States continue to trade what do you think will characterize the goods that the EU exports to the United States and the goods that the United States exports to the EU?