21. Recall the market is composed of 50% responsible firms run by LSU graduates ($50/share fundamentals), 40% medium quality firms run by Grambling State graduates ($40/share fundamentals), and 10% untrustworthy sleazeball firms run by greased-out weasels (the animal, not the human-therefore their stock is worth $0/share, fundamentally). How much of the market would LSU grads have to take over for your willingness-to-pay to catch up to their firms' stock prices? 100%

21. Recall the market is composed of 50% responsible firms run by LSU graduates ($50/share fundamentals), 40% medium quality firms run by Grambling State graduates ($40/share fundamentals), and 10% untrustworthy sleazeball firms run by greased-out weasels (the animal, not the human-therefore their stock is worth $0/share, fundamentally). How much of the market would LSU grads have to take over for your willingness-to-pay to catch up to their firms' stock prices? 100%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the simple monetary rule Rt-r=m(T-), if m=0.5 and the inflation rate is 2 percent below the target inflation rate, the Federal Reserve will A. raise the marginal product of capital by 1 percent. B. lower the interest rate by 1 percent. O C. raise the interest rate by 1 percent. OD. lower the marginal product of capital by 1 percent. O E. lower the target rate by 2 percent.
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