The Bertrand model of differentiated product markets is routinely used to study interactions between vehicle manufacturers. Kleir and Linn (2011) present an overview of how economists have modeled automotive firms response to the corporate average fuel economy (CAFE) standard. This paper is saved in the problem set folder . Consider the overly simplistic version of the model in which cross-price elasticities are set to zero. Prior to the introduction of the CAFE standard, the firms profit maximization problem is given by: max Pj Show how the first order conditions for profit maximization under the maintained assump- tions can be expressed as: (pj - cj) 1 P j Where e is the own price elasticity.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Tina is applying for the position of a daycare assistant at a local childcare center. which document should tina send with a résumé to her potential employer? a. educational certificate b. work experience certificate c. cover letter d. follow-up letter

The questions of economics address which of the following ? check all that apply