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Q1. Jane wants to buy a beautiful doll as a gift for her sister's birthday. She knows that the same product is offered in different shops with prices of $120, $100 and $80 with odds of 1/3 of each price. She just stopped at a shop and knows that the price is $100. Suppose that there is a search cost of $5 for each search. Should she search for one more time?
Q2. How did you arrive at the 2 dollars for taxes and what is the advantage to society to correct the externality?
Gains from trade will result if a country specializes.
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Semiconductor chips are used to store information in electronic products, such as personal computers. One of the early leaders in the production of these chips was Texas Instruments (TI).
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
To build trust among virtual team members, managers should Deep-six the egos
Air transport for businesspeople and tourists
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Elucidate the marginal revenue from the fourth worker
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
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