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Suppose that E[u|x; v] is a linear function of (x; v) and that u and v each have zero mean and are uncorrelated with x. Show that E[u|x; v] = v for some . (Hint: if E[u|x; v] is linear, then it is identical to L[u|x; v] and the linear projection formulas are available.)
Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab (pronounced zay-tab), an allergy medication. What wholesale price will Mirk Labs set? How much Zatab will it produ..
A 50-kilowatt gas turbine has in investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. what is the ..
Find the equilibrium interest rate. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.
To produce a recorded CD, q=1, a firm uses one blank disk, D=1, and the services of a recording machine, M=1, for one hour. Draw an isoquant for this production process. Explain the reason for its shape. (Hours of machine services on the vertical axi..
q.watch the video titled fear the boom and bust. using the tools of macroeconomics identify the primary difference
What is the probability (±0.001) that the next customer pays at least $30? What percent of customers who pay at least $30 pump premium? % (Round your answer to the nearest whole number.)
How high should a monopoly set its prices in order to maximize profits? When you post a response to this question, place it in the context of one of the following examples:
If a governments money is backed by gold and global instability causes its mint parity rate to become too high and as a result the country falls into a depression, can the governments central bank fight the recession by increasing the money supply? E..
Lee Inc, is considering a robot that will cost $6,000 to purchace. At the end of it 9 year life, it salvage value will be $1,000. The robot will need to overhauled in year 5 at a cost of $3,000. O&M costs per year will be $1,000. The robot will gener..
Suppose that a school district pays all high school teachers with the same years of experience the same salary, regardless of teaching field, and that this produces a surplus of History and English teachers, and a shortage of Science and Math teacher..
Assume that a radiology group practice has sthe following cost structure. What is the groups underlying cost structure?
Fifth Problem Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production function is f(x1, x2) = x 1/3 1 x 1/3 2 , where output is measured in gallons, x1 is the number of pounds of lemons he uses, and x2 is t..
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