Economics

A steam boiler is needed as part of the design of a new plant. The boiler can be

A steam boiler is needed as part of the design of a new plant. The boiler can be fired by natural gas, fuel, or coal. A decision must be made on which fuel to use. An analysis of …

A steam boiler is required as part of the design of a new plant. The types of fu

A steam boiler is required as part of the design of a new plant. The types of fuel that can be used to ignite the boiler are natural gas, fuel oil, and coal. The cost of installat…

A steel factory has the right to discharge waste into a river. The waste reduces

A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let X denotes the quantity of waste dumped. The …

A stem cell research project requires expensive specialized laboratory equipment

A stem cell research project requires expensive specialized laboratory equipment. For this purpose, three pieces of equipment and their associated cash flows (listed below) are un…

A stock has a beta of 1.60 and an expected return of 10 percent. A risk-free ass

A stock has a beta of 1.60 and an expected return of 10 percent. A risk-free asset currently earns 2.4 percent. If a portfolio of the two assets has a beta of 3.20, what are the p…

A stock is currently worth £50. The value of a call option on the stock with a s

A stock is currently worth £50. The value of a call option on the stock with a strike price of £47.5 and maturity of 100 days is £4.38. The continuously compounded risk-free inter…

A stock market analyst examined the prospects of the shares of a large number of

A stock market analyst examined the prospects of the shares of a large number of corporations. When the performance of these stocks was investigated one year later, it turned out …

A stock price is currently $42. Its stock price will be either $45 or $38 one ye

A stock price is currently $42. Its stock price will be either $45 or $38 one year from now. The risk-free rate is 5%. A one-year call on the stock has an exercise price of $40. (…

A stock that reinvests its earnings in the business instead of paying regular di

A stock that reinvests its earnings in the business instead of paying regular dividends is called an income stock. preferred stock. common stock. a growth stock. The most trades a…

A stock trades at $30. Over the first six months it could go up to $35 or down t

A stock trades at $30. Over the first six months it could go up to $35 or down to $25. In the subsequent six-month period, if the stock starts at $35 it could go to $40 or it coul…

A stock was priced at $150 per share at the end of 2007. The following table sho

A stock was priced at $150 per share at the end of 2007. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for …

A stock\'s returns have the following distribution: Demand for the Company\'s Pr

A stock's returns have the following distribution: Demand for the Company's Products Demand Occurring This Demand Occurs Weak Below average Average Above average Strong Probabilit…

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month,

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the prop…

A strategy often employed by Walmart for example is to \"undercut\" it\'s compet

A strategy often employed by Walmart for example is to "undercut" it's competition. In other words it will offer products "for sale" below it's Profit Margin in an effort to attra…

A struggling company currently has a net worth of $700,000. It owes $500,000 fro

A struggling company currently has a net worth of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to th…

A student has a job that leaves her with $500 per month in disposable income. Sh

A student has a job that leaves her with $500 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% l…

A student has just written on an exam that, in the long run, fixed cost will mak

A student has just written on an exam that, in the long run, fixed cost will make the average total cost curve slope downward. Why will the professor mark it incorrect? a) In the …

A student is trying to decide whether or not to go to college. His two options a

A student is trying to decide whether or not to go to college. His two options are to get 12 years of education or 16 years (nothing in between). If he stops after high school, he…

A student makes the following argument: A price floor reduces the amount of a pr

A student makes the following argument: A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilibrium. A pri…

A student needs to know details of a class assignment that is due the next day a

A student needs to know details of a class assignment that is due the next day and decides to call fellow class members for this information. She believes that for any particular …

A student needs to know details of a class assignment that is due the next day a

A student needs to know details of a class assignment that is due the next day and decides to call fellow class members for this information. She believes that for any particular …

A student spends he “conspicuous consumption” bud , M, on ski lift passes (x) an

A student spends he “conspicuous consumption” bud , M, on ski lift passes (x) and shoes (y). The price of a ski lift pass is Px an the price of a pair of shoes is p. Her utility f…

A student was interested in the question of whether more literacy among women im

A student was interested in the question of whether more literacy among women improved the the life expectancy of women. (literacylife expectancy) Her overall relationship was exp…

A student whose parents live in California, but who attends college in Florida,

A student whose parents live in California, but who attends college in Florida, learns that his grandparents bought him 5,000 shares in Target Corporation stock many years ago, wh…

A student writes the following: “Increased production leads to a lower price, wh

A student writes the following: “Increased production leads to a lower price, which in turn increases demand.” Do you agree with his/her reasoning? Explain why, or why not. Use a …

A study by Price Fishback and Shawn Kantor of the University of Arizona shows th

A study by Price Fishback and Shawn Kantor of the University of Arizona shows that after the passage of workers’ compensation laws, wages received by workers in the coal and lumbe…

A study by the Information Technology department at WPU revealed company employe

A study by the Information Technology department at WPU revealed company employees receive an average of four e-mails per hour. Assume the arrival of these e-mails is approximated…

A study conducted by The Conference Board found that \"(t)he productivity level

A study conducted by The Conference Board found that "(t)he productivity level in the Euro Area, measured as output per hour in US dollars (after adjustment for differences in rel…

A study found that lower airfares led some people to substitute flying for drivi

A study found that lower airfares led some people to substitute flying for driving to their vacation destinations. This reduced the demand for car travel and led to reduced traffi…

A study has estimated the effect of changes in interest rates and consumer confi

A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C 0.036 ln r, where M denotes real mon…

A study in 2005 reported that the average male CEO of Fortune 500 firms is 6 fee

A study in 2005 reported that the average male CEO of Fortune 500 firms is 6 feet, about 2.5 inches more than the average male. Why might this be difficult to eliminate through la…

A study is conducted to evaluate risk factors for incident hypertension. All par

A study is conducted to evaluate risk factors for incident hypertension. All participants are free of hypertension at the start of the study and are followed for 4 years at which …

A study of costs of electricity generation for a sample of 56 British firms in 1

A study of costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost function: 16 AVC = 1.24 + .0033Q + .0000029Q2 - .00004…