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What is the example of social behavior or a social situation that seems inconsistent with the fundamental presupposition, and why this example could be inconsistent?
Assume a product as a reliability represented by an exponential distribution with beta = 75 (weeks). What is the 50% life expectancy e.g. the length of time where the reliability = 50%?
Suppose a small community of 200 people want to save a rare Toad. Each person has a willingness-to-pay function of P = 2.5 -2.0Q, where P is the per-Toad price that she or he is willing to pay to save Q rare Toads. To save a Toad, they must capture i..
Suppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,700,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Between 2008 and 2009, the equilibrium price of pianos remained constant, but the equilibrium quantity of pianos decreased. From this, you can conclude that between 2008 and 2009, the supply of pianos and the demand for pianos ? .
What does the difference in the CCCs tell us about the riskiness of the two firms? Why is that the case? If the expected industry return is 8%, will both firms stay in the industry? Calculate the cost of equity for the two firms?
Suppose that the Government wants to augment the level of national savings in the economy and institutes a policy to reward savings behavior. Hence, borrowers face a real interest r as always, but lenders receive r(1+s) on their savings, where ‘s’ is..
Tamara's best friend, Janine, who had been having bad luck the past couple of years developing good relationships, finally meets the "man of her dreams." She has been dating him for several weeks. There is only one problem: this man is married. To fu..
Calculate Pete's marginal and average cost schedules. What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
American Girl doll has an inverse demand curve of P = 150 – 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output le..
In 2014, the annual wage "ceiling" for workers aged 62 to 64 was $15,480. How large of a monthly Social Security check would a 63 year old retiree get if her maximum benefit is $1,600 per month and she continues working for wages of $3000 per month? ..
Elucidate how much income did this represent for each of the 300 million U.S. citizens. Illustrate what was the largest GDP decline in a postwar U.S. recession.
For each of the following factors that may affect market equilibrium in a specific labour market, describe which curve will be shifted and how this shift will affect wage rates: Regulation requiring that firms provide health insurance for their worke..
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