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A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY with probability 0:8 (but, mistakenly, GIRL with probability 0:2). If the fetus is truly a girl, the device says GIRL with probability 0:7 (but, mistakenly, BOY with probability 0:3). Mrs. Jones and Mrs. Smith both use the device. For Mrs. Jones, it says GIRL. For Mrs. Smith, it says BOY. Who can be more sure about the sex of her unborn baby, Mrs. Jones or Mrs. Smith? Justify your answer using Bayess rule.
If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger?
There have been tariffs on imported steel to 'protect' U.S. steelworkers. Who do the tariffs harm and who do the tariffs help?
What do we mean by the 90-day forward exchange rate? Explain.
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Your dental clinic provides $3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. Private pay patients have a price elasticity of demand of -3. What do you charge ..
Given the supply curve for radiographs by a radiology practice, predict how this curve will shift (supply will increase or decrease) if the following occur:
Describe the considerations that ABC Airline must explore as it considers entering into an international contractual arrangement with XYZ, Inc. which is an airline part manufacturer located in Europe.
Consider a monopoly that faces the demand curve P=120-3Q, where Q =q1+ q2 is the total output from the two plants operated by the firm. The two plants are characterized by the total cost functions TC(q1)=10q1+10(q1)^2 and TC(q2)=60q2+2.5(q2)^2. q res..
Cost function C(q) = 10 + 10q + q^2 where q is the quantity of laundry services provided. If the price of laundry service is 50 units, how much is the optimal quantity of laundry services to maximize profit and what is the maximum profit that Acme La..
A factory that employs more than 70% of the workforce in the community of Green Island has closed, because of foreign imports. john who operates a convenient store within the community noticed a sudden increase in the demand for his products since th..
Describe how the substitution effect and the income effect influence the slope of an individual's supply curve of labor.
When analyzing the housing market, the supply curve
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