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A decision maker has ordered every commodity in Walmart alphabetically according to the commodity's name. Every time when he needs to choose from several commodities, he always choose the second one according to his ordering. Can we model this decision maker as a rational player? Why?
Now, the payoff from adopting windows is (50 x W) and from adopting Mac is (15+ 5 x M); n consumers are simultaneously deciding between Windows and Mac.
q. - mr. banks knows that line maintenance expense varies with company size and he wants to use the latter to predict
Identify the long-run determinants of exchange rates and the short-run determinants of exchange rates. In a free market, what determines exchange rates in the long-run and the short-run?
Economicsts first proposed measuring utility with a unit of measure termed a util. What was the problem with his measure of utility? The fact that as we consume more of good we enjoy each subsquent unit less (1st hot wing vs. hot wing) is an example ..
Explain how a clear and simple Policy Targets Agreement (PTA) might have helped to maintain a low inflation regime with low unemployment in the 1990s while in 2012 a similar regime no longer seems to be achievable under a very different PTA.
Between early 2008 and the beginning of 2009, a gradual stock-market downturn and plummeting home prices generated a substantial reduction in U.S. household wealth that induced most U.S. residents to reduce their planned real spending at any given pr..
Do you think the approach that is currently in use in Portugal could work in the United States? Why or Why Not?
Discuss the principles of the “law of one price” and the conditions which must hold for the law of one price to hold. Discuss the economic reasons why the increase in North American production could have caused this price divergence to occur. Discuss..
Assume the demand for plastic surgery is price inelastic. Are the following statements true of false? Explain. When the price of plastic surgery increases, the number of operations decreases.The percentage change in the price of plastic surgery is le..
Illustrate what price should you charge in order to maximize revenues from the sales of the Highlander. Please put this into Excel so I can see the formulas/calculations.
Nominal GDP is the variable most commonly used to measure short-run economic fluctuations. These fluctuations can be predicted with some accuracy. Real GDP is the variable most commonly used to measure short-run economic fluctuations. It is almost im..
When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit. The price a profit maximizing monopoly charges is always greater than i..
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