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How should we deal with problems such as Asymmetric Information, Adverse Selection and Moral Hazards?
What are the major issues that must be considered in measuring inputs for regression analysis of production functions?
The day after a snowstorm, cars arrive at Mel’s Auto-Wash at an average rate of 10 per hour according to a Poisson process. The automated car washing process takes exactly 5 minutes from start to finish. What is the probability that an arriving car w..
There are two firms in an in an industry. Let q1 and q2 be the two firms in an industry and Q= q1 + q2 be the total output. The inverse demand in the industry if P (Q)= 45 – Q. The cost function for each firm is C(qi) = 9qi. Assume oligopolistic comp..
major league level to gain an advantage and the possibility of severe health problems for young children from continued use of the body mass enhancer now and in the future when baseball productivity might have been positively affected by the use of s..
Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.
If the basket of goods used to calculate the CPI is changed to reflect substitution to lower priced goods by consumers, it would result in:
How much do you have to deposit today in order to allow 5 annual withdrawals, beginning at the end of year 8, with the first withdrawal of $1000 with subsequent withdrawals decrease at the rate of 5% over previous year’s withdrawal? The interest rate..
Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a. How do you know that the industry is in long run equilibrium? b. Suppose that there is an increase in demand for this product. Show and explain the short-run ad..
List and support your choice of one industry where there is too much federal government regulation and one industry where there is not enough federal government regulation.
Discuss how financial friction increased sharply during the financial crises of the 1930s and 2007-2009 and how it intensified the crises.
In preparation for membership in the European Monetary Union (EMU), countries had to participate for 2 years in the European Monetary System (EMS). Italy at that time had a fixed exchange rate against the DM, but a floating rate against the dollar. W..
Is the third dragline economically attractive if i is 20%? Graph the PW for interest rates of 0% to 100%?
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