firm will produce the quantity at which its marginal cost (MC) equals the market price (P) (P>AVC). MC=8Q=P or Q=P/8 2. Since all 10 firms are identical‚ the industry supply curve will be: Q=10(P/8)=5P/4 3. To find the short-run equilibrium price equate the industry supply with the demand: 5P/4=300-P 5P=1200-4P 9P=1200 P=1200/9=133‚(3)≈133 So‚ the short-run equilibrium price will be $133. At this price the quantity supplied by all 10 firms will be about 167 units each firm will
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and put prices are given by Strike Call premium Put premium 80 22 4 100 9 21 (IJ Find the convexity violations. (1.-) What spread would you use to effect arbitrage? 105 5 24.80 o t: y- (Q I A New York finn is offering a new financial instrument called a "happy calL" It has a payoff function at time T equal to max(.5S‚ S - K)‚ where S is the price of a stock and K is a fixed strike price. You always get something with a happy call. Let P be the price of the
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Any time one decides to learn something new‚ or make some sort of positive change‚ there is going to be some work or effort involved‚ a price to pay. Just know that the price is worth it. Imagine being able to achieve anything you want! Imagine being able to have anything you want‚ be anything you want‚ do anything you want. You really can‚ if you know how. So when you think about a goal‚ something you want to achieve or accomplish‚ your mind might naturally go to what you don’t want or what you’re
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Cigarette price increase The article is about the minimum price of cigarettes of RM7 for a pack of 20 cigarettes is not a new measure and has been in place since January 2010. More than half of the minors (53%) said they buy their own cigarettes‚ while 30% got them from friends in Malaysia‚ 55% of the adolescent smokers smoke less than 10 sticks per day in Kelantan‚ 95% of shops sold cigarettes to minors without verifying their age. There are over 80‚000 retail outlets selling cigarettes throughout
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The Price Leadership or Dominant Firm Model I think this model is easiest to learn diagrammatically‚ and then mathematically. Here is the graph and then an explanation of what is happening: Notice first the total market demand curve for the industry as a whole. Then notice the marginal cost curve for the competitive fringe of firms. This is a model in which there is one firm which is dominant and then a fringe of small firms who are so small that they behave like perfectly competitive firms
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Price/Earnings Ratio Model (P/E) The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis. A valuation ratio of a company’s current share price compared to its per-share earnings. For example‚ if a company is currently trading at $60 a share and earnings over the last 12 months were $2 per share‚ the P/E ratio for the stock would be 30 ($60/$2). The earnings multiplier can be computed as follows: P/E Ratio = Current
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Price elasticity of demand Marija managed to explain perfectly what is the price elasticity and what are the factors that affect it: availability of substitutes and time. In overall‚ it is a very scholastic presentation since Marija gives in detail how the demand of goods is changing according to the availability of substitutes‚ the fluctuation of the price of goods‚ and what impact they have on the consumers if all the other factors are being stable. Though‚ there is a point of which I would add
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Our group has conducted valid research and all agree that the high price and ever-rising cost of textbooks in the state of New Mexico has become an issue. Luis Argon Castro‚ Catherine Ponce‚ Mathew Hagman‚ Saul Velez‚ and Hannes Harmon have conducted thorough research to bring this problem to the forefront of issues in New Mexico. We wish to open the public’s eyes to the knowledge and information produced by us on this matter. It feels as if commercial companies‚ publishers‚ and authors are taking
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with the elasticity that enabled them to reach their goals‚ (which were twice for the iPhone 5s as they were for the previous iPhone.) Price elasticity of demand refers to the change of the product’s quantity demanded when there is a change in the price of the product. In other meaning‚ it refers to the responsiveness of quantity demanded by a change of 1 % in price. There is a different on the elasticity of demand of iPhone5s depends on the economy and standard of life of country where were being
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Oil and Gas PricesOil and Gas 2There are many issues that cause the cost of oil and gas to increase. The main contributing issue to the increasing cost of oil and gas is supply and demand‚ when demand is greater than supply‚ the price of oil and gas will increase. The factors that affect supply include increased demand‚ problems with refineries and pipelines‚ and disruption to supply or threat of disruption to supply.With the increased demand for oil in the United States and other countries such
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