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1. Give two personal examples where you made a decision based on sunk costs. What would an economist have done in those situations? Explain.
2. Explain the ideas of faulty framing and cognitive dissonance in your own words.
dont tell me weve lost another bid exclaimed janice hudson president of prime products inc. im afraid so replied doug
Consider debt and exchange rate crisis vulnerability for the country of Ukraine; please explain how you would minimize risks to possible investment.
q.a survey of households in a small town showed that in 850 of 1200 sampled households at least one member attended a
you are asked questions about 5 mutually exclusive candidates described as follows all quantities are in
What is the present worth of this alternative? What is the annual cost of this alternative? What would its present worth be if its life was shortened to 25 years in order to compare it to another alternative of that length?
Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How can patent encourage invention? Why do we say that a monopoly is inefficient?
The Profit Maximizing condition for firms facing perfect competition is 1) Marginal Revenue = Marginal Cost and 2) Marginal Cost must cut through Marginal Revenue from below. Market structure is measured in the ability to set the price of the output...
q.assume the demand and supply for wine within the u.s. areqd 100 - 20p u.s. demand curveqs 20 20p u.s. supply
what he has learned to estimate the demand for ice cream in his father's parlor during his summer vacation. Using regression analysis.
Essential Problems in bold: Demand with a quasi-linear utility function. Consider a consumer with the following utility function u(x1, x2) = √x1 + x2. This is an example of a Quasi-Linear utility function. Calculate the MRS for this consumer for gene..
Consider Bertrand competition with homogeneous products. Two firms, 1 and 2, produce an identical product and compete by choosing price. Consumers buy from the firm with the lower price. If the prices are identical, however, assume all consumers buy ..
There are two types of farming tractors on the market, the FT250 and the FT500. The only difference between the two is that the FT250 is more prone to accidents than the FT500. At these prices, 2,000 of each model are purchased each year. What is the..
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