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1. The fall in value of the British pound relative to the Japanese yen is a(n)
a. depreciation of the pound.
b. appreciation of the pound.
c. weakening of the yen.
d. floating of the yen.
1. A U.S. firm opens a factory that produces camping equipment in Albania, by itself
a. this increases U.S. net foreign investment and decreases Albanian net foreign investment.
b. this decreases U.S. net foreign investment and increases Albanian net foreign investment.
c. increases only U.S. net foreign investment.
d. increases only Albanian net foreign investment.
1. A Swiss firm opens a watch factory in the United States.
a. This is Swiss foreign direct investment and by itself increases Swiss net foreign investment.
b. This is Swiss foreign direct investment and by itself decreases Swiss net foreign investment.
c. This is Swiss foreign portfolio investment and by itself increases Swiss net foreign investment.
d. This is Swiss foreign portfolio investment and by itself decreases Swiss net foreign investment.
Suppose a college decide to raise the tuition fee from Rs.3, 000 per month to Rs.4, 000 of MBA level students. The number of students getting admission is 500. The price elasticity of demand for the students is 0.2.
Find out the number of students getting admission after increase in tuition fee.
Find out the total revenue before and after the increase in tuition fee.
Explain whether the increase in tuition fee is wise decision or not on the basis of total revenue.
a) Airbus makes 50 planes a year, which sell for $50 million each. If Airbus raises its price, Boeing will leave its prices unaltered, so Airbus loses market share. It faces an elastic demand curve. However, if Airbus cuts its price below $50 million, Boeing is forced to match the price cut, so quantity demanded increases only to the extent that additional plane orders are placed when planes are cheaper. Each company faces inelastic demand when it cuts the price. Draw the demand curve that Airbus thinks it faces.
a) Find the firm's total revenue function TR (Q). (4 marks)
b) Find the expression for the firm's marginal revenue. (2 marks)
c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?
a) Write down the associated cost, revenue, and profit functions. (6 marks)
b) What profit (or loss) results from the sale of 500 copies of The Xpress? (2 marks)
c) How many copies should be sold in order to break even?
day of marketing in 2020, in August 2020, the demand for peach is now given
as QD = 200 -3P. From the statement above tell in one sentence the change in
demand; what did you consider as the indicator? Write down any five factors
responsible for the change in demand. Support your answers by sketching the
equations above on the same graph.
*If both of you work hard, you both get an A, which gives each of you 40 units of happiness.
*If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.
*If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.
*Working hard costs 25 units of happiness.
a. Fill in the payoffs in the following decision box:
b. What is the likely outcome? Explain your answer.
d. Another classmate cares more about good grades: He gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would he also want you as a partner?
a. Construct an edge worth box diagram and show how production, efficiency and
equilibrium is achieved in an economy. (10Marks)
