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Suppose that we wish to study the effect of the stimulant digitalis on the blood pressure Y of rats over a dosage range of x = 2 to x = 5 units. The response is expected to be linear over the region; that is, Y = β0 + β1x + ε. Six rats are available for the experiment, and each rat can receive only one dose. What dosages of digitalis should be employed in the experiment, and how many rats should be run at each dosage to maximize the quantity of information in the experiment relative to the slope β1?
Why is a common analysis period necessary in comparing mutually exclusive alternatives by the "Present Worth Method", but is not necessary in the "Equivalent Uniform Annual Cash Flow method"?
mary has variable costs equal to vc y2 f where y is the number of bouquets she sells per month and where f is the
Suppose the market discount rate is 20% instead of 5%. Should he now charge the limit price to deter entry or accept the entry? Assume his goal is maximize the PV of long-run profits.
The aim is to analyse the contemporary issue from the perspective of conventional ‘textbook' economics. The word limit for the essay is 2000 words.
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Describe why marginal analysis must be used in decision making with examples. Also, give examples of poor decision-making when sunk costs were used to justify choices, and discuss how legal and ethical issues may play a role in making decisions.
How would you expect each of the following factors to affect the natural rate of unemployment?There is an increase in the rate of technological change
Suppose instead that the price of DVDs is $20. Now what is the profit-maximizing quantity of DVDs that Bob should produce? What will his total profit be now? Will he produce or shut down in the short run? Will he stay in the industry or exit in the l..
Assignment : Long-Term Investment Decisions
How should she spend her income to maximize her utility - Mario likes to play video games. He is experiencing diminishing marginal utility, but his marginal utility remains positive. What can we say about Mario's total utility?
Explain the tension that exists in businesses today between economics and ethics. Do you think that there does have to be a tradeoff between economics and ethics?
Governments of country A and country B spend the same amounteach year. Spending on functions relating to dealing with marketexternalities and public goods accounts for 25 percent ofgovernment expenditures in country A
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