Natural Gas Boom Technological improvements in hydraulic fracturing, or Fracking, have decreased the ...

Natural Gas Boom Technological improvements in hydraulic fracturing, or Fracking, have decreased the cost of extracting smaller pockets of natural gas. What affect does this have on supply and demand as well as on the equilibrium price and quantity?

QUESTION 2

Fashion Buyers II A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are 200,000 on average. Passing on a highly demanded design means lots of unsold merchandise and missing out on profits that are 300,000 on average. So long as he is more than 40 confident that the design will be successful, carrying the design will minimize expected decision error costs. Why might he opt to carry designs only if he is more than, say, 50 confident of success?

QUESTION 3

For a wheat farmer, the following factor(s) are uncontrollable
 a. Quality of the wheat
 b. Weather
 c. The speed at which the product reaches its buyers
  d. All of the above

QUESTION 4

Fashion Buyers I A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are 200,000 on average. Passing on a highly demanded design means unsold merchandise and missing out on profits that are 300,000 on average. What probability of a design's success should he be in order to choose to carry it?

QUESTION 5

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: 15, 14, 13, 12, 11, 10, 9, 8, 7, 6, 5 . Eleven sellers are also willing to sell at the same prices. If the market maker is free to choose the number of transactions he can make, what is his maximum profit?
 a. 8
 b. 10
  c. 18
  d. 28

QUESTION 6

Transcendent Alternatives Transcendent Technologies is deciding between developing complicated, thought-activated software, or simple, voice-activated software. The voice-activated software would cost 50 million to develop and has a 60 chance of being successfully launched and generating revenue of 100 million. The thought-activated software would be a bonanza if successful, generating 1 billion in revenue. But it is so complicated, it is projected to cost would be 400 million. How likely would success have to be for Transcendent Technologies to opt for the thought-activated software?