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Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response. Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could be taken.
EverKleen Pool Services provides weekly swimming pool maintenance in Atlanta. Dozens of firms provide this service. The service is standardized; each company cleans the pool and maintains the proper levels of chemicals in the water. At what output le..
During the business cycle, we can expect supply side economic growth:
You have to decide whether or not it is worth your time to go on a date or to hang out with your friends. Either decision will increase your total utility, but you are constrained by your total income of $160.00. Find consumer optimum. at what point ..
Saddam Toaster Co. is contemplating a modernization of its antiquated plant. It now sells its toasters for $20 each; the variable cost per unit is $8, and fixed costs are $840,000 per year. Calculate the break-even quantity. What will be the break-ev..
What is price discrimination and how is it used to increase a monopoly’s profit? Explain how consumer surplus changes when a monopoly price discriminates. Explain how consumer surplus, economic profit, and output change when a monopoly perfectly disc..
Assume that the demand for welding services is D(P) = 34-P/2, and the inverse supply function is PS(Q) = 4 + 10Q + Q2. This supply curve represents the long run supply curve of the incumbent firms already in the market, but there is free entry into t..
Consider the economy described in Box 1. Consider also a “balanced budget” increase in G and T (in other words, G and T both rise by the same amount). Each increase of 1 unit in G and T will a) increase r by .005 b) increase r by .015 c) decrease r b..
Indicate whether each of the following is counted in this year’s GDP: a. you bought a new Wii at GameStop last year and resold it on eBay this year. b. You purchase an “Investing for Dummies” book at Barnes and Noble. c. You purchase a historic home ..
A business's strategic choices are limited by economic conditions. Using the Kudler Fine Foods Virtual Organization, perform an environmental analysis based on
He starts this year with nothing in the bank and ends next year with nothing in the bank. Draw his budget constraint in E1 - E2 space.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..
If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output?
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