Answer:
1. $900; $1000
Explanation:
Their dominated strategy is the strategy they can decide to adopt in future while their dominant strategy is the plan they are working with at present
Answer:
The present worth of the desalting option revenue is 29,567,434.81 or $29.6 million.
Explanation:
Note: Calculation of the present worth of the desalting option revenue.
In the attached excel file, the revenue from year 6 to 21 is calculated using the following formula:
Revenue in the current year = Revenue in the previous year * (100% - Decreasing rate) ................... (1)
Where;
Decreasing rate = 10%
From the attached excel file, the present worth (in bold red color) of the desalting option revenue is 29,567,434.81 or $29.6 million.
Answer:
12%
Explanation:
Given that,
Potential real GDP = $200 billion
Natural rate of unemployment = 6 percent
Actual rate of unemployment = 12 percent
Okun's law refers to the law which states the relationship between the losses in the production of a particular nation and the unemployment.
It also indicates that for every 1 percent, the actual rate of unemployment exceeds the natural rate of unemployment, then as a result there is a GDP gap of 2% is generated.
Cyclical unemployment:
= Actual rate of unemployment - Natural rate of unemployment
= 12% - 6%
= 6%
Negative GDP gap:
= 6% × 2
= 12%
Therefore, the of the negative GDP gap as a percentage of potential GDP for the economy is 12%.
