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Consider a monopoly with the following cost curve: c(q) = 60 + 10q and the following demand function: p(q) = 45 - q - (q^2)/3 . What is the profit-maximizing solution for the monopoly? How large are its profits?
Suppose that you have a von Neumann-Morgenstern utility function given by. Over what range of wealth is this function potentially appropriate to analyze your financial choices under risk? What is your Arrow-Pratt measure of risk attitude?
A clothing manufacturer has factories in Los Angeles (LA), San Antonio (SA), and Newark (N). Sales (in thousands) during the first quarter of last year are summarized in the production matrix.
The questions on this homework deal with an economy called Economica. Calculate the money supply (M1) using the "simplified definition method." Assume the information given here is the only relevant information. Carefully follow all numeric instructi..
The term gross domestic product (GDP) refers to: How has the measure of the GDP changed over the past decade?
Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the ..
The author's hypothesis is "... the benefits of progress are often both illusory and detrimental to tribal peoples when they have not been.
Life Cycle Cost Analysis (LCCA) does not include "User benefits resulting from project" or "Externalities resulting from project". Unlike analysis based on net annual worth, net present worth analysis does NOT require equal analysis periods for diffe..
What is the theoretical justification for a so-called Laffer curve? Based on the empirical evidence described in the text, should the U.S. raise or lower its tax rates in order to increase tax revenues? Explain.
Consider a committee of Ann, Bob, and Carol that is choosing between three alternatives, {x, y, z}. Player i’s preferences are represented by the ordering i . Suppose the three player’s preferences are: x A y A z. y B z B x. z C x C y. Is M complete ..
What are the two most commonly used/analyzed financial statements? Explain what each of these are, what info they contain, and why they are significant in evaluating the overall "health" of a company.
Auto Bull's-Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who perform each of these services. Next week, the shop is offering a discounted oil change. How might this affect the production possibilities curv..
Describe the coefficient of correlation between the two variables. Interpret the value. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms.
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