Suppose there is a 30% chance that an oil spill will occur in an area and the economic damage of the potential spill is $1 million. What is the expected value associated with the spill?
a. $3,000,000
b. $1,000,000
c. $300,000
d. $30,000
e. $3,000
Ans: c. $300,000
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If the equilibrium exchange rate exceeds the par exchange rate in the market for pounds, the pound is overvalued
Indicate whether the statement is true or false
What is a fixed exchange rate and how is its value fixed?
What will be an ideal response?
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000, while a market researcher receives $20,000. The marginal contributions of engineers and market researchers are:
Based on the above information, how should the manager with an annual budget of $160,000, allocate this budget in order to maximize the number of new products developed?
A. Hire 4 engineers and 1 market researcher. B. Hire 4 engineers and 3 market researchers. C. Hire 2 engineers and 1 market researcher. D. Hire 3 engineers and 2 market researchers.
Costs that have already been incurred, and which cannot be recovered, are known as
A) short-run fixed costs. B) implicit costs. C) unavoidable costs. D) sunk costs.