10 = 16, Q = 3.333313/4, Q₂ = 3.21}/4¸ B0 = 0¸ U = lnc₁ + In C2, and 7** = 0.20. 16. The value of is a. 16 b. 24 c. 25.6 d. 26.7 17. The value of I₁is a. 16 b. 24 c. 25.6 d. 26.7 18. The value of C₁is a. 16 b. 24 c. 25.6 d. 26.7
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- Wouldn't it be correct to say E=12, not 2E=12 for 12–(2/3)E=(1/3)E?Orange Tech (OT) is a software company that provides a suite of programs that are essential to everyday business computing. OT has just enhanced its software and released a new version of its programs. For financial planning purposes, OT needs to forecast its revenue over the next few years. To begin this analysis, OT is considering one of its largest customers. Over the planning horizon, assume that this customer will upgrade at most once to the newest software version, but the number of years that pass before the customer purchases an upgrade varies. Up to the year that the customer actually upgrades, assume there is a 0.50 probability that the customer upgrades in any particular year and that the customer will upgrade in 25 years if they haven't already by that point. In other words, the upgrade year of the customer is a (discrete) random variable. For guidance on an appropriate way to model upgrade year, refer to Appendix 13.1. Furthermore, the revenue that OT earns from the…Nicky Joe runs a satellite television subscription service for a rural customer base is considering a sale on his satellite dishes Using monthly data he estimates the demand for the dishes to be Log Q = log 11 – 0,70 Log P +1.4 Log I. R² = 0.85, SER=2.33 (0.50) (3.12) (0.10) At an approximate 95% level of confidence, can you say that a price reduction will increase profits? Why? a. Yes, a 95% confidence interval for the price elasticity of demand is [-0.50 to - 0.90] so the firm is on the inelastic portion of the demand curve, and a price reduction will increase profits. b. No, a 95% confidence interval for the price elasticity of demand is [-0.50 to - 0.90] so the firm is on the inelastic portion of the demand curve, and a price reduction will reduce profits. Yes, a 95% confidence interval for the price elasticity of demand is [0.50 to 0.90] so the firm is on the elastic portion of the demand curve, and a price reduction will increase profit. d. No, a 95% confidence interval for the…
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