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1. How can economists explain irrational behavior?
2. What is the role of risk in decision- making?
3. How does game theory explain strategic behavior?
Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies - Create an approach to tax research that results in credible and current resources.
Summarize the empirical results of Kravis, Keesing, Kenen, and Baldwin on the importance of human capital in helping to resolve the paradox.
Compare to units, A and B. A has a new cost of $42,000, at life expectancy of 14 years, a salvage value of $4,000, and an annual operating cost of $3,000. B has a new cost of $21,000, a life expectancy of 7 years, a salvage value of $2,000.
When the 1984 restrictions decreased the sup- ply of land disposal services, assume that the mar- ginal private costs (MPC) of production decreased to MPC' = 32 + 2L.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
Assume that a country's production function is Y = AK0.2 L0.8.The ratio of capital to output is 2, the growth rate of output is4% and the depreciation rate of capital is 8%. Capital is paid itsmarginal product.
The cost function per t-shirt is identified to be the following: y=ln(X+1). Fixed costs associated are a step function based on area needed. For each 1000 shirts, the cost associated with storage space is $1000 .
Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..
Suppose that the production function takes the form Y = AKa*L1-a, where a?= 1/3. Assume that the saving rate, s = 0.15 and the rate of depreciation d = 0.05 Further, let A = 1, and L = 2, initially.
Suppose quotes for the dollar-euro exchange rate E$/¤ are as follows: in New York $1.50 per euro, and in Tokyo $1.55 per euro. Describe how investors use arbitrage to take advantage of the difference in exchange rates. Explain how this process wil..
At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..
Outline the audit steps that you would take to enable you to render an unqualified opinion with respect to the inventory. (You may omit consideration of tests of unit prices and clerical accuracy.)
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