Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
In the first part of the twenty-first century a great recession struck most of the countries in the world. The next decade has been severally impacted with the consequences of this crisis.
A consumer must spend all of her income on two goods (X and Y). In each of the following scenario, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume goo
Problem: Provide an intuitive explanation for why a "buy one, get one free" deal in not the same as a "half-price" sale. Fully discuss.
Describe the impact of various forms of competition on business operations with emphasis on perfect competition.
Which of the following are necessary conditions for third-degree price discrimination to enhance profits.
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm’s marginal cost is constant at $15 per unit. a. Express the firm&r
Problem: An economist estimated that the cost function of a single-product firm is: Based on this information, determine the following: a. The fixed cost of producing 10 units of output.
What is the equilibrium price and quantity for oven mittens? Using Microsoft Excel, construct a table that shows the quantity demanded, the quantity supplied, and the surplus or shortage associated
What is the difference between the output level where the total profit is maximized and the output level where the total revenue (TR) is maximized? What is the significance of these two values in th
Are they right about the current compensation scheme? Which of the two new schemes (if any) is better for the firm and why?
a. Create a 12-step tree showing the evolution of the stock price over the next year. The hint given in class: the Excel computation is easier if you draw the trees like this, so that up movements a
One of the few things most economist agree upon is that free trade benefits all. parties that are involved. However, some argue that free trade leads to environmental degradation. Explain why free t
Problem: If a portfolio is on the capital market line, show that it is perfectly correlated with the market portfolio. Is its beta 1?
An investor has a $10,000 portfolio that is allocated as follows: short 100 shares of stock A, buy 250 shares of B and 200 shares of 3. Any additional funds are borrowed or lent at the risk fr
Assume utility function for a person from watching movie (M) and consuming popcorn (C) is as following: U= minimun {2M; C}.
If last year average market return was 7%, what would you expect the return on the security to be? Explain. If you think there is not enough information to answer the question, explain why.
Determine what fiscal policy measure has a more direct impact to the economy. Is it an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous
a) Compute the payback period of this project. b) Compute the discounted payback period of this project assuming a discount rate of 5%.
Suppose that a risk averse individual has $1, and there are three assets; one safe, and two risky. The safe one yields a sure rate of return of 1. The risky ones have distribution functions F(y1) an
1) According to the Modigliani-Miller model, what is the value of company UU and company LL? Explain.
In view of all of microeconomic concepts such as competition, markets vs Cental Command, Coarse's theorm, hidden costs, allocative efficiency, and market forces, why would it make sense to outsource
What role does a financial department play in valuing business opportunities and what are some of the key financial concepts that valuation work must consider?
Suppose that the following Social Security reform became law: All current Social Security recipients will continue to receive their benefits, but no increase will be made other than cost-of-living
Estimate the cost of capital for each firm. Which company will generate more shareholder value?
The Bonds of Microfood, Inc. carry a 10% annual coupon, have a $1,000 face value, and nature in 4 years. Bonds of equivalent risk yield 7%. The market value of the bonds should be (assume annual com