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Suppose there is asymmetric information in the market for used cars. Sellers know the quality of the car they are selling, but buyers do not.
Buyers know that there is a 30% chance of getting a "lemon", a low quality used car. A high quality used car is worth $30,000, and a low quality used car is worth $15,000. Based on the probability, the most that a buyer would be willing to pay for a used car is $_______ (round response to the nearest whole dollar)
Elucidate in which country is an expansionary monetary policy likely to have a larger effect on aggregate output. Explain your answer using aggregate supply and aggregate demand curves.
Consumers are not able to resell good 1. For p
Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $40,000 per quarter for 25 years. If she works 37 years before retiring, how much money must she and her emplo..
What metrics or financial measures are used by analysts and investors to judge the relative success of a retailer? Why are each of these measures relevant.
From the new York times. What business and/or economic factors prompted the decision? Did the managers involved satisfied or optimize? What was their risk approach to the decision they made? In your assessment, how creative was their decision?
Explain how quantity of labour to be hired and wage rate would be determined if input market is perfectly competitive. output market may be either perfectly competitive or imperfectly competitive.
Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price.
The paper for this course requires you to think of a macroeconomic problem that currently exists outside of the United States. Using that problem, you will form a paper topic that will explore alternative solutions to the problem. My rejection would ..
What is an accountable care organization (ACO)? What makes Oregon unique in its approach to Coordinated Care Organization? Why are states experimenting with different models of integrated care?
Kermit and Fozzie play a game with two jars, each containing 100 pennies. The players take turns, Kermit goes first. Each time it is a player's turn, he chooses one of the jars and removes anywhere from 1 to 10 pennies from it. Does this game have a ..
Which of the following determinants of marginal productivity cannot be acquired by someone who wants to increase future productivity? The effects of the national health care program on labor markets will. One reason some economists are critical of th..
A news clipping service is considering modernization. Rather than manually clipping and photocopying articles of interest and mailing them to its? clients, employees electronically input stories from most widely circulated publications into a databas..
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