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1. Describe the Arrow-Pratt measures of risk-aversion, both absolute (r) and relative rho.
2. Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
There is no word limit. The answers should be concise and contain relevant equations.
Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Complete the columns for to conclude the profit maximizing output for this firm. Draw the relevant graph to show the profit maximizing output.
Illustrate what monthly profit would she realize with that level of business during the next 3 years.
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
Calculate the output level and price that maximizes total revenue.
If the company were to build the bridge, illustrate what would be its profit-maximizing price. Would that be the efficient level of output.
Elucidate why relatively flat as opposite relatively steep worker demand curves are more consistent with the empirical observation.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
the industry that this claim were untrue, what critical questions could you ask about the HHI used for the study
Elucidate your reasons as to whether oligopolies are bad for society in part a and how it applies to the beer industry in part b. Submit your analysis in a one to three page paper.
If the prices of gold and other commodities increases how will this influence the value of rand. Explain how will a depreciation of the rand influence our exports and imports.
Illustrate what are the effects on the growth rates of cumulative o/p, cumulative consumption, and also cumulative investment.
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