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You hold an auction on eBay and expect two bidders to show up. You estimate that each bidder has a value of either $5 or $8 for the item, and you attach probabilities to each value of 50%. Your own value for the item is zero. You can set a reserve price, a price below which you will not accept bids for the item. What reserve price should you set, and what is your expected revenue from auctioning the item with a reserve price?
this question uses the general monetary model where l is no longer assumed constant and money demand is inversely
Which of the following transactions would be recorded as a credit in the U.S. current account?
The manufacturers of information products typically
A movie theatre has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. Assume now that the movie theatre can give price discounts to students. Explain the concept of pri..
Illustrate would be its profit-maximizing cost if the company were to build the bridge.
You are an Economist advising the Federal Government about the Australian Labour Market and issues relating to unemployment - what types of unemployment are the most serious?
Expansionary monetary policy by the foreign country will lead to a ______________ of the home currency, while expansionary monetary policy in the home country will lead to a ____________ of the home currency.
Company A has a patented product and earns a profit of 2 million. Company B shared its idea to the world and and now sells its product to many businesses. They earn a profit of 2 million. Why is Company A a better choice for investing your lottery wi..
Select a Multinational Corporation (any you choose) and do Overview of their Strategies For Example are they a Monopoly? What is their Pricing Strategy? Who are the competitors? Are they conglomerates? Mergers and Acquisitions? Market Power? Anti tru..
Which assumption about consumer preferences leads to diminishing marginal rate of substitution (MRS) as we move along from left to right on a typical Indifference curve.
Environmental policies: Explain the overfishing problem in Singapore. What are the private costs of catching fish faced by any one fisherman? What is the external cost (negative externality) of catching fish generated by any one fisherman?
Consider the utility function U(x, y) = x3y2 with the price of X equal to 3 and the price of Y equal to 4. Income devoted to the purchase of x and y is $36. Find the equilibrium quantities of X and Y. (Use the LaGrange Method) Using the budget constr..
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