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Bradley and Kjungja (1982) experimented with the perception of subjective triangles. When you look at three points that form a triangle, there is a subjective impression of lines connecting those points to form the contours of the triangle. Bradley and Kjungja asked participants to view the subjective triangle while it was stationary and again while it was rotating in a circle. The participant was instructed to say whether the subjective contours were stronger while the triangle was stationary or while it was rotating. Out of 37 participants, 35 said that the contours were stronger when the triangle was rotating. How could they test whether this difference was significant (although here a formal test isn't really needed)?
Assume that an electric power plant could be built in the Upper Peninsula using wood as the fuel and would produce 621 megawatts of electricity. Assume that it would have an efficiency of converting wood energy into electricity of 0.29. Let's assu..
What is the shape of the market demand curve for phiffle, for prices between $1 and $100? For some reason, one firm is willing to sell at a price of $2, while the other insists on a price of $3.
Consider the market for used cars. Each car on the market has a quality, denoted q, which can take any number between 0 and 10, with equal probability. In other words, q follows a uniform distribution on the interval [0,10].
Calculate the cross-price elasticity of demand and are the goods complements or substitutes
Suppose that the market demand for a new drink is given by P = 30 – Q and the marginal cost to produce this new drink is $3. What is the monopoly price of this new drink? What price would this new drink sell for if it sold in a competitive market?
A firm's target capital structure consists of 40 % debt, 5 % preferred stock, and 55 % common equity. The cost of preferred stock is 11.26%, the firm’s cost of debt is 10% and the cost of equity is 14 %. What is the firm's weighted average cost of ca..
What were the views of Keynes and Friedman on the exogeneity or endogeneity of the money supply? What justi?es their views? What were the views of Wicksell on the exogeneity or endogeneity of the money supply? What justi?es his views?
Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not? Explain why this model violates the assumption of no perfect collinearity.
Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
Assuming that U =0.5, would an hour spent in the labor force searching for a job make the husband better off or worse off? Would the worker continue to be a member of the labor force under these conditions? If not, how would he be ca..
A multiplicative demand model
a purely competitive firm finds that the market price for its product is 20. it has a fixed cost of 100 and a variable
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