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Suppose a jar contains 17 red marbles and 35 blue marbles. If you reach in the jar and pull out 2 marbles at random at the same time, find the probability that both are red.
There are three consumers of a public good. The marginal willingness-to-pay for the consumers are as follows: What is the efficient level of production of the public good? What is the efficient level of production of the public good? Propose an alte..
If the producers of the good (medical care and hospitalization) were to decide to raise prices, how would their total revenue be affected?
Based on the current events in our economy, please keep this in mind. When interest rates are held more or less at a constant rate and price risk remains stable, financial leverage does not greatly impact changes is stock return at the market level. ..
In each of the following situations, indicate whether the physician's discrimination action is taste based or statistical. An American physician detests interacting with French people, so she always gives French patients quicker exams than she gives ..
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 80-Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = Q1 and MC2 = 8. How much output should be pro..
Name a time you were indifferent between two goods. What were they? What made you indifferent between them? Name a time there was a change (higher or lower) in your budget for two goods. What were they? How did the change affect your consumption choi..
Compute the company's total costs, and graph the revenue curve and the total cost curve. Do the curves have the shape you expect. Over what range of production is the company making pro ts.
The City of Ames issued a new series of bonds on Jan 1, 2009. The bonds were sold at par ($1,000), have a 2.5% annual coupon rate and mature in 10 years, on Jan 1, 2019. Coupon interest payments are made semi-annually (on June 30 and December 31). Wh..
Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN is given below. The average labor cost including overhead expenses is about $20 per hour. Time for the very first unit = 9 hours T..
A large school of sharks is reportedly seen by beach-goers at the beaches of Melbourne.
Most Caribbean countries have some type of controls on the provision of taxi services. Individuals that provide taxi services must first obtain a license and maintain certain standards for the driver and vehicle. Let’s investigate the implications of..
Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm's position to shareholders asking why the company does not pay bribes when its foreign competitors in ..
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