Problem Set Seven Solutions Chapter 9 1. Two car manufacturers‚ Saab and Volvo‚ have fixed costs of $1 billion and constant marginal costs of $10‚000 per car. If Saab produces 50‚000 cars per year and Volvo produces 200‚000‚ calculate the average fixed cost and average total cost for each company. On the basis of these costs‚ which company’s market share should grow in relative terms? Answer: Average total cost is average fixed cost plus marginal cost: ATC = FC/Q + MC. Volvo’s average fixed cost
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73-240 | Recitation A Problem Set 1 Problem 1: Nominal GDP‚ Real GDP‚ Price Indices‚ and Inflation A. Nominal GDP in Year 1 = $430 Nominal GDP in Year 2 = $617.50 Growth Rate of Nominal GDP = 44% B. RGDP(1) in Year 1 = $430 RGDP(1) in Year 2 = $410 RGDP(1) growth = -4.65% RGDP(2) in Year 1 = $655 RGDP(2) in Year 2 = $617.50 RGDP(2) growth = -5.73% The answer differs depending on which base year you use because the relative prices of the goods in comparison to each other (price
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FIN 350 Prof. Porter Problem Set 4 1. Describe what happens to the total risk of a portfolio as the number of securities is increased. Differentiate between systematic risk and unsystematic risk and explain how total risk and systematic risk are measured. As the number of securities increases‚ the total risk of the portfolio decreases. This decrease occurs due to the benefits of diversification which is the process of acquiring a portfolio of securities that have dissimilar risk-return characteristics
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Beer’s Law Problem Set Spring 2013 1. Calculate the absorbances corresponding to the following values of the percentage of transmitted light: (Provide your final answer with three decimal places) a. 95% b. 88% c. 71% d. 50% e. 17.5% f. 1% 2. A solution of a compound (1.0mM) was placed in a spectrophotometer cuvette of light path 1.05cm. The light transmission was 18.4% at 470nm. Determine the molar extinction coefficient. Include units in your answer. 3. The molar extinction coefficient of reduced
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ECON 213 PROBLEM SET 3 Name: ___Krystal Logsdon_____________________________________ Problem Set 3 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 6. 1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices. Price of crackers Quantity Demanded (per month) $3 80 $2.5 120 $2 160 $1.5 200 $1 240 $1.00 - $1.50: __*_-0.333__________________________ $1.50 - $2.00: __*__-0.6___________________________ $2.00 -
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Problem Set #3: Edited Version Page 100 – Problems and Applications 1. The three functions of money are medium of exchange‚ unit of account‚ and store of value. Medium of exchange refers to money being accepted as everyday currency‚ that you can go into a store and be confident in the fact that they will accept your money for goods and services. Store of value is defined as the ability of money to retain its value of time; in other words‚ $100 today will be $100 tomorrow‚ next month or 6
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ECON112 Macroeconomics Problem Set 3 *Solution* Fall 2010 (Instructor: Li‚ Yao; TA: Fok Pik Lin‚ Astor) -----------------------------------------------------------------------------------------------------------------------------------Posted: Monday‚ November 1‚ 2010 Due: 5:30 PM Monday‚ November 8‚ 2010 40 marks total Part I: True/False/Uncertain Please justify your answer with a short argument for each question and draw a diagram if necessary. (15 marks‚ 3 marks each: 1 mark for correct judgment
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PROBLEM SET 1 - SOLUTION PROBLEM 1 Part A - Record a liability (and expense) for $800‚000 in 2009. Since the loss has been recorded‚ we don’t have to disclose it. However‚ if the possible loss exceeds $800‚000 (or if the probable loss was a range and we only recorded the minimum) then we need to disclose. Part B - If only 80% of the cans were sold before 12/31/09‚ then record a liability of $640‚000. The recall of the cans sold in 2010 would be disclosed as a subsequent event. Part C - Disclose
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University of Toronto ECO333–Urban Economics Problem Set 2 Due: 24 October 2014 1. Question 2.1 from Brueckner (p. 250) (book available at http://go.utlib.ca/cat/8842730). 2. (a) Suppose the city fathers in a small Midwestern town‚ which was started over 100 years ago as a county seat‚ originally zoned all residential lot sizes in the town to be the same size. All work takes place either at the county seat building on the square in the middle of town or at shops adjacent to the square. Everyone drives
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25814-P.R.(081-090)Uncertainty 8/8/00 8:56 AM Page 81 Strategy under uncertainty Hugh G. Courtney‚ Jane Kirkland‚ and S. Patrick Viguerie The traditional approach to strategy requires precise predictions and thus often leads executives to underestimate uncertainty. This can be downright dangerous. A four-level framework can help. A t the heart of the traditional approach to strategy lies the assumption that executives‚ by applying a set of powerful analytic tools‚ can predict
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