Happy Cows is a perfectly competitive dairy farm that has consistently faced a 50 percent chance of a high demand of $5 and a 50 percent chance of a low demand of $4. The managers of Happy Cows learn that there is now a 50 percent chance of a high demand of $8 and a 50 percent chance of a low demand of $2. All else equal, the change in the high and low demand values makes an accurate forecast
________ valuable to Happy Cows as the firm stands to gain ________ profit from an accurate forecast.
A) more; less
B) less; less
C) less; more
D) more; more
D) more; more
Economics
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Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned while the Thai government continued trying to defend the peg, because the baht had been pegged ________ the equilibrium exchange rate for the baht.
A) higher; above B) higher; below C) lower; above D) lower; below
Economics
Refer to the figure above. The relative price of T (in terms of S) is
A) 2. B) 1/2. C) 500. D) 1000.
Economics