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Consider the following model:
This model relates the price of houses to their distance from an incinerator both before and after knowledge the incinerator's construction was known. Y81 is a dummy variable for after the construction project was announced. In order to consider the problem more thoroughly, a more complete model was also estimated:
Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions (Note: It may be possible to compute needed values from more than one output set. In such cases, choose the one that makes the most sense to you and explain your reason.)
Comment on the significance of time trend and seasonality.
Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.
Find out the equilibrium market price. Find out the profits of the leader and the follower
Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..
Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
How much does the gross price increase in each market
American Mining Company is interested in obtaining quick estimates of the supply and demand curves for coal.
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
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