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During the recession in the early 1990s, retailers observed that consumers were spending a lot more time searching for good bargains than ever before, which led the retailers to lower prices. Why?
In a gambling game a woman is paid $3 if she draws a jack or a queen and $5 if she draws a king or an ace from an ordinary deck of 52 playing cards. If she draws any other card, she loses.
A monopolist that practices perfect price discrimination will choose an output level where marginal revenue is equal to marginal cost to maximise profit.
Individuals without health insurance impose substantial negative externalities on those who do. In a paragraph, list some of these externalities and briefly describe their signficance.
suppose Arnor and Gondor are two very similar countries that started out with identical population, technologies, etc. except that Gondor has a much higher mortality rate due to a more hazardous geographical location.
What are the marginal rates of substitution for each person and what is the formula for the contract curve and draw an Edgeworth box, labeling carefully, and indicate the contract curve.
a. Graphically explain what happens to the reservation wage if someone needs to spend some of their non-labor income on day-care services in order to become employed. b. Graphically explain what happens to the reservation wage if someone experience..
Find the optimal consumption bundle if m1 = 100, m2 = 88, and r = :2. Is the consumer a borrower or a lender? How much do they borrow or lend per period?
"The thing a lot of people don't understand about e-commerce is the degree to which it is a scale business. While a conventional retailer might have to double its capital spending to double sales, Amazon's costs are largely fixed.
Discuss the characteristics of monopolistic market in detail. Name five different companies that belongs to this market. Compare and contrast monopolistic competitive market with Oligopoly.
this problem is intended to be more open-ended than previous assignments so you can get a feel for what its like to do
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
Find out the quantity at which profits are maximal. given that quantity, find out the price charged and monopolist's profits. (solve for answers using the equations)
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