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a) Draw graphs showing Margo's utility from music CDs and from movies on DVDs.
b) Compare the two utility graphs. Describe Margo's preferences.
c) Draw graphs that show Margo's marginal utility from music CDs and from movies on DVDs.
Nobel Laureate Robert Solow once jokingly noted, "I have a chronic trade deficit with my barber, who doesn't buy a darned thing from me." Is this a problem?
Only use the data from 1987 and 1988. Construct the difference in differences estimator in two different ways: Construct the 4 means (control, treatment × before, after)
First alternative what fraction of the firm's shares will it have to give up to get the requisite financing - What rate of return will the firm have to pay for the new funds if the redeemable preferred stock alternative is chosen?
In the previous problem, assume that the parents stop their contribution after 18 years (when their child enters a college). Use the modified version of Eq. (12.31), labeled (12.31MOD), and determine the amount they must contribute monthly for 18 ..
When Advanta Corp. decided that it wished to begin charging a fee to holders of its credit cards for periods during which the card is not used and for closing the account, it first "signaled" its intentions to hike fees by publicly announcing its pla..
In a country with a labor force of 200 people, a different group of 10 people becomes unemployed each month but becomes employed once again a month later. No others outside these groups are unemployed. A. What is the country’s unemployment rate? B. W..
Draw the decision tree for this problem without the probability values and compute the revised probabilities needed to complete the decision, and place these values in the decision tree.
Suppose you are an industrialist begninning a biotechnology company. If your research is successful, technology can be sold for $30 million. If your research is unsuccessful, it will be worth nothing.
Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservat..
The first task is to develop an outline asset maintenance policy for the case project. This should recommend suitable maintenance management strategy for the next five years.
What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain why, if this rule does not hold.
In the long run the interest rate adjusts to adjusts to balance the supply and demand for loanable funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.
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