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Suppose that you are interested in a causal relationship between Y; and (X1i, X2i) where Yi is the outcome variable and X1i and X2i are explanatory variables. By plotting those variables, you concluded that Y; and X1i has a 3rd order polynomial relationship and Y; and X2i has a linear-log relationship.
a) Write down the appropriate regression equation for your model.
b) Compute the marginal effects of X1i and X2i on Yi.
c) Compute the change in Yi when X1i changes by AX1 and X2i changes by AX2.
An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
The era after the fall of Rome is often called the Dark Ages. Do you believe this is an apt title for Europe? Does it accurately reflect the era?
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Find the total quantity produced also every firm's profit in equilibrium. Express Illustrate what happens to these when Firm 1 changes its technology as above.
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