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Kyle is an English PhD student; there is some chance he will get a prestigious university job that will pay him $80,000/year (probability p). If he does not get this job, he will have to take a job at Starbuck's, paying $25,000/year (probability (1 p)). Kyle's utility function over salary is given bypw, where w is the amount of his salary. Before Kyle has a chance to nish his PhD, he is oered a job at Dunder Miin paying $60,000/year.
How low does p have to be before Kyle is better o taking the Dunder Miin job?(hint: p is some number between 0 and 1. For example, p = :25 means there is a 25% chance of Kyle gettingthe university job and a 75% chance of his working at Starbuck's.)
Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q. If a $10 per-unit excise tax is lecied on the buyers of a good, then after the tax buyers will pay how much for each unit of the good.
Solve the forecast model
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A multiple regression analysis based on a information set that consists of thrity observations yielded the following estimated demand equation:
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Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings
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