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Consider the following claim: "There is no point in using the HDI (Human Development Index) as GNI is strongly correlated with that measure. Discuss this claim using the evidence we discussed in class.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
Provide optimal wage-bonus package, compute this employees' effort, expected payoff and employer's profit. Draw a game tree for employer-employee game in parts a-c.
Wagner Tool produces output according to Q = 2K1/2L1/2, where K is the amount of capital used and L is the amount of labor employed.
1. Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations?
Variable costs are expenses incurred by the organization regardless of the number of products produced. Once the problem that brought the problem-solving team together has been addressed, the team is disbanded.
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s..
You know that marginal cost of last unit is $30. Should industry continue to operate at a loss. Carefully elucidate your answer
Do you agree that federal and state regulations rather than competition is needed to limit rising health and medical care expenditures and achieve universal health and medical coverage? Justify your position.
Cost-effectiveness analysis compares the value of an innovation with its cost. Cost cutting cannot increase profits. Insurance creates a principal-agent relationship that is not common outside of healthcare. Which function of management is most conc..
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
Past sales show that when a scanner is priced at $175, the quantity demanded is 350 units per week. For each $5 drop in price below $175, the quantity demanded rises by 50 units per week. The manufacturer will not market any of the devices if the pri..
Case Study - Technology and Economic Change and what are the causes of economic growth in potential output in the long-term? Apply the theory to illustrate and explain your answer with an example.
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