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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?
Calculate the price elasticity of demand in summer for transit services and the cross-price elasticity of demand for transit with respect to the level of business activity.
An engineer on the verge of retirement has accumulated savings of $200,000 in an account paying 10% compounded quarterly. How much can he/she withdraw quarterly if he/she expects to live for only ten years after retirement
A 10-year, 12%, $1000 bond that pays dividends quarterly can be purchased for $900. If the bond is purchased and pays as scheduled, calculate the nominal and the effective rate of return that the purchaser receives.
Consider two firms that act as Cournot competitors and face the inverse demand function p(.), where p'(Y1 + Y2) 0 i = 1,2.
Explain why the difference between these wage rates equals the cost of acquiring human capital.
The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $56 and the price at point e is $31 per bag. The price at point f is $67 and the price at point g is $32 per bag.
Consider a modification to (11.43) where you do not penalize the constant. Formulate the problem, and characterize its solution.
Two firms, Alpha and Beta, are competing in a market in which consumer preferences are identical. Alpha offers a product whose benefit B is equal to $100 per unit. Beta offers a product whose benefit B is equal to $75 per unit
Suppose that a consumer has an income of $24and a utility function given by: U = 2*log(x) + log(y). The priceof x is $2 and the price of y is $2. A) Write down the Lagrangean for this consumer's maximization problem.
Assume that the Roach Coach (a converted bus) averages 15 miles per gallon, with a standard deviation of 3 miles per gallon, and that fuel consumption is normally distributed. Using the Normal Distribution, if the total trip mileage
find the covariance between hourly wage X and education Y (measured in years of schooling) using the following summary statistics for a sample of 10 workers in a plant. xbar = 11.775 ybar=13.8 sum of (x-xbar)(y-ybar) = 103.55 sum of xy =1728.5
My wages are going up 5 percent a year. If only inflation weren t 5 percent a year, I would be rich.
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