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In the simple linear regression model yi = βˆ 1 + βˆ 2xi + ˆei , where E(ˆei) 6= 0. Show that the model can always be written with the same slope, but a new intercept and error term that does not violate the property that E( ˆei) = 0.
Microsoft emerges to have a monopoly with over 90% of the personal Calculator operating market. Why then would it not be charging a monopoly cost.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.5P, and the marginal cost of production is $150. Determine the optimal number of units to put in..
A person who paid $10 for an umbrella in the U.S. sees the exact same umbrella in a store in London, England for 6 British pounds. If the person could expect the real exchange rate to be 1 U.S. umbrella per 1 English umbrella, then the person could i..
Comment on the following quotation: "One way that a minimum wage could result in expanded employment is if the government sets the minimum below the market equilibrium wage."
The average cost of production _______ if there are scale economies, and ________ if there are scale diseconomies.
Suppose that the price index for the years 1980 and 2010 is equal to 60.0 and 180.0, respectively. Also suppose that Maya earned an annual salary of $20,000 in 1980. Given the above, how much would Maya have to earn in 2010 in order for her salary to..
Discuss equations for and graph the variable cost, average variable cost, and marginal cost of cleaning classrooms.
The changes in the macroeconomic indicators affect the economic decisions of the 3 economic agents (household, firms, and government). Assume you are a business owner (manager). How do you use macroeconomic indicators in your business plan and strate..
The marketplace is highly competitive, with boxes currently selling for $100 every thousand. Conigan's total and marginal cost curves.
How do private commercial banks multiply the quantity of money placed in circulation by the Federal Reserve?
Find out equilibrium cost and quantity. Illustrate on your graph how a rise in cost of automobiles would affect gasoline market.
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
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