Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Cruise the World's expected profits?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) $5 B) $10 C) $9 D) $8
C) $9
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Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
Economies of scope exist when a business becomes more efficient by
A) offering fewer services. B) offering more services. C) becoming larger. D) becoming smaller.
GDP can be calculated by summing up the "value added" at every stage of production.
Answer the following statement true (T) or false (F)
You borrow $10,000 at an interest rate of 5% to open a snow cone stand. You will earn an economic profit if
A. the return on your investment is 5%. B. the return on your investment is greater than 5%. C. the return on your investment is between 0 and 5%. D. the return on your investment is 10% or greater.