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A plumber has a choice the choice of installing a budget pipe at a cost of 2200, a safe pipe at a cost of 3200 or an extremely safe pipe at a cost of 5000 in a private house. If the pipe should break the cost of the damage would be 600000. In the case of a budget pipe an accident will occur in one out of one hundred installations. In the case of a safe pipe an accident will occur in one out of two hundred installations. In the case of an extremely safe pipe an accident will occur in one out of three hundred installations. Extablish which pipe our plumber should choose to avoid negligence and liability for damages. Provide calculations and discuss the economic reasoning behind your ?ndings.
Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate
Consider the following payoff matrix in which the numbers indicate the profit in millions of dollars for a duopoly based either on a high-price or a low-price
Why is maintaining the traditional agricultural system not a viable option for most developing countries?
What are the characteristics of an oligopoly? Using the concept of duopoly and the price leadership model, discuss demand and pricing strategies in an oligopolistic market structure.
In the _____, households receive goods and services and pay firms for them
A consumer spends more time searching for a good when her reservation price is:
Define and explain the difference between normal goods and inferior goods. Provide two real world examples of each good from your own personal or professional life.
You are considering buying a new house, and have found that a $200,000, 30-year fixed-rate mortgage is available with an interest rate of 4 percent. This mortgage requires 360 monthly payments of approximately $947 each. If the interest rate rises to..
A survey of 200 college graduates who have been working for at least 3 years found that 90 owned only mutual funds, 20 owned only stocks, and 70 owned both. What is the probability that an individual owns stock? A mutual fund? What is the probability..
Consider the forces of supply and demand that are present in your life. Types of demands to consider may include individual vs. market, household vs. government
What are your thoughts on tort reform, more specifically setting caps/limits (ceilings) on jury awards/verdicts in tort liability cases. Class action cases? Corporate liability cases? Is this a good idea? Who would lobby for these caps? Who DOES lobb..
Economic growth has slowed in the last quarter of the year to 0.6% from the previous third quarter growth rate of 4.9%. The economy lost 12,000 jobs in the last month of the previous year while shedding 80,000 jobs during the months of January and Fe..
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