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A research ?ts a polynomial regression to his data, but ?nds that the prediction on the edges of his dataset are wildly inaccurate. Explain why this happens and suggest a possible solution.
Suppose that c=0, the discount factor is ρ (rho), and demand is constant elasticity, y = p^-η. Write the equilibrium conditions for the competitive firm and the monopoly in this case. For the monopoly equilibrium condition to be sensible, what restri..
Explain 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.
"The roots of both modern global economic prosperity and poverty (the so-called GreatDivergence) are in the Industrial Revolution that began in the late 18th century." Discuss
Write down demand and supply equations for wireless phones; include two exogenous variables in each equation. Draw a supply-demand graph for wireless phones. Use your graph to show how a change in one of your exogenous variables affects the model’s e..
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 = 100 - 0.5P, and the marginal cost of production is $80. Determine the optimal number of units to put in ..
Compare and contrast the four market structures. Include comments in regards to price setting for profit maximizing, origination of the market structure, and government responses and/or involvements in each type of market structure.
You have been tasked with determining the pay structure for a new team of sales workers. You are considering whether to pay them strictly on commission or whether to pay a smaller commission but guarantee a modest base salary.
Suppose there are two similar firms in a market that are strategically interdependent. Firm A and Firm B. Firm A is a larger firm than firm B. Basically each needs to determine whether to “collude” or to “cheat” in an oligopolistic market.
From an economist's perspective, an important consideration for policies to address global warming is: Which of the following does not illustrate the asymmetric information problem: In a well-functioning cap-and-trade system for pollution rights, the..
One of the most important debates during the Constitutional Convention in 1787 was about the power and size of government. If the Founding Fathers could view the government of the United States today, which side of that debate would think that they w..
What does this say about the elasticity demand for insurance products?
The price of cotton rises. What happens in the market for cotton shirts?
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