1. Consider a personal computer market with two firms‚ X and Y. Suppose that Firm X and Y have the following total cost function: TCX=10QXTCY=10QY . The market is given by P=100-QX-QY. (a) Calculate the Cournot equilibrium outputs of firm X and Y in this market. (b) Calculate their market price in the Cournot equilibrium. (c) Calculate their profits in the Cournot equilibrium. (d) Suppose that firm X is considering implementing a proprietary technology they have developed. The onetime sunk cost
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INTRODUCTION Among the investment avenues‚ commodity futures trading is a fast growing sector with huge untapped potential‚ along with the financial markets. The major difference between commodity and financial markets is that‚ in commodities futures physical delivery takes place where as in the capital market it does not. In these markets‚ there are farmers‚ industrialists‚ warehouses‚ consumers‚ dealers and traders‚ who buy and sell commodities. There are warehouses‚ which stores commodities
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Fordham International Law Journal Volume 20‚ Issue 5 1996 Article 6 The Role of Law in Business Development Ibrahim F.I. Shihata∗ ∗ Copyright c 1996 by the authors. Fordham International Law Journal is produced by The Berkeley Electronic Press (bepress). http://ir.lawnet.fordham.edu/ilj The Role of Law in Business Development Ibrahim F.I. Shihata Abstract Part I of this Essay concerns the law of developing nations as it effects business growth. Part II describes the legal framework
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equity when their market values are high‚ relative to book and past market values‚ and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence‚ current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. Introduction “Equity market timing” refers
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between State Bank of India (SBI)‚ the largest state-owned banking and financial services company in India‚ and BNP Paribas Assurance (French bank). SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26% of the capital. SBI Life Insurance has an authorized capital of ₹20 billion and a paid up capital of ₹10 billion. SBI Life was founded in March 2001 and its Main Headquarter is in Mumbai‚ India. SBI Life has 7‚334 on- roll employees and about 96000 agents.(Wikipedia). PROBLEM
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their owners. This is done through the social and economical role of a business. Economic roles are concerned with the financial impacts that the activities of a business have on various groups in the business environment. The economic roles are wealth creation‚ employment and innovation. Social roles are focused on the impacts of a business on the community. Social Roles are entrepreneurship‚ choice and quality of life. Economic roles are important for a business as they can increase the value
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Economic development in New Zealand ! HDI Life expectancy GDP per capita PPP Literacy rate Mean years of schooling 2010 0.907 80.40 years $25‚293 99% 12.4 years 2013 0.919 80.82 years $25‚689 99% 12.5 years ! The Human Development Index (HDI) is a composite statistic of life expectancy‚ education‚ and income indices used to rank countries into four tiers of human development. From the year 2010 to 2013‚ New Zealand’s HDI has gone up
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Business Economics for the World Market Vietnam Group Project Summer 2012 Post World War II Economic History The post WWII economic history of Vietnam has been through many changes. These changes were due to the result of war‚ political ideologies‚ and natural resources. The most notable change was the division of North and South Vietnam. The economic division of North and South Vietnam had been in place since the colonial influences of France. Each division had its own economy with unique
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Question # 1a The finance profession has had difficulty in developing a practical approach to measuring risk premiums and thus investor’s required rate of return ‚ but financial managers most often use a method called the capital asset pricing model (CAPM) .The capital asset pricing model (CAPM) is the standard risk-return model used by most academicians and practitioners. The important concept of CAPM is that investors are rewarded for only that portion of risk which is not diversifiable. This
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Diversification or market development in china? Diversification is a form of innovation. It can be related-producing products in a field in which you know or unrelated which is the reverse of the latter. It is defined in Ansoffs matrix as high risk compared to a lower yet still medium risk of market development. This is a strategy in which companies market their existing products but in a completely new market. Both can potentially lead to high profitability if successful. In China‚ these are the
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