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You went out to dinner one night and observed one of your patients drinking heavily. The next day the patient is to check into the hospital for a pre-scheduled surgery. Your colleague found out about this and stated the patient’s behavior was irrational. You disagreed. Under what condition is behavior irrational according to the properties of consumer behavior discussed in the chapter? What situation could make this patient’s behavior rational?
Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.
Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
Computer time saved is worth $325 per hour and the interest rate is 12% compounded monthly. Should the old unit be replaced now? If the system is used 16 hours per day, calculate the IRR represented by using the improved storage system.
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
The narrator is consumed by the idea that human begings do not actually have free will. How is his free curtailed on the nadir, and how does he fight back.
A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of it life. Operating and maintenance expenses for the system are projected to average $0.6 million per ye..
Use the following information from the current year financial statements of a company to calculate the ratios below- Accounts receivable turnover. Times interest earned ratio. Divided yield ratio. Earnings per share.
One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move.
How does the adverse selection problem arise in the credit card market? How do credit card companies reduce the adverse selection problem that they face? To what complaint does this give rise?
Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well.
There are five flights daily from Pittsburgh via US Airways into the Bradford, Pennsylvania, and Regional Airport. Suppose the probability that any flight arrives late is 0.20, the probability that none of the flights are late today is [a].
Why is popcorn so expensive at the movies? Argue both that a high price for popcorn is price discrimination and then argue that it is not price discrimination.
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