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Willingness to Pay for Used Baseball Pitchers. Suppose a healthy baseball pitcher is worth $5 million per year to his team, compared to only $1 million per year for an unhealthy pitcher. Suppose that half the pitchers in the league are healthy, and half are unhealthy. According to an executive of a baseball team, If my assumptions are correct, our team is willing to pay a maximum of $3 million for a pitcher in the free-agent market. (Related to Application 3 on page 625.)
a. What are the executive s assumptions?
b. Are these assumptions realistic
what was the quantity of money in 2011?
jeff has 4 hours that he can choose to spend either studying for a test or playing a new video game. If he spends all of time studying, he can score a 92 on the test. If he plays for 1 hour, his test score falls 5 points.
Suppose a randome experiment can be represented by 2 sets of events ,Aiand Bj ,with each pair of sub events (A1andA2,andB1,andB2) being mutually exclusive and collectively exhaustive. Find the conditional probabilities
The Charm City Cereal Company makes a cereal from several ingredients. Two of the ingredients, oats and rice, provide vitamins A and B. The company wants to know how many ounces of oats and rice it should include in each box of cereal to meet.
Given the utility function U(X,Y)=X^0.5+Y^0.5for John. a) Do the preferences indicated diminishing marginal utility for Xand Y b) If john has income of 30 dollars. What is his demandcurve/equation for X when the price of Y is 2 dollars.
How much training is enough?
Mr. Smith has a weekly income of M = $24. Initially the prices of X and Y are both $2/unit and Mr. Smith buys 6 units each of X and Y each week, a bundle on indifference curve I0. Then, ceteris paribus, the price of X increases to $4/unit, with th..
Blockbuster Movie Rentals has market power in the previously viewed video sales market. The demand curve for blockbuster movies is QD = 10 - 0.4P -> P = 25 - 2.5Q. Blockbusters marginal revenue function is MR(Q) = 25 - 5Q.
The cost function per t-shirt is identified to be the following: y=ln(X+1). Fixed costs associated are a step function based on area needed. For each 1000 shirts, the cost associated with storage space is $1000 .
The present value of K payable after 2 years is $960. If the force of interest is cut in half, the present value becomes $1200. What is the present value if the effective annual discount rate is cut in half
In need of a new toner cartridge for my laser printer I came across the online retailer, supermediastore.com. Their policy is that all orders for $25 or more ship for free. My toner cartridge was $16.99 plus $12.34 for shipping.
consider the following linear programming problemmin a 2bs.t.a 4blt or equal to 212a b gt or equal to 73a 1.5b lt or
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