User Account

All Pages

What is the expected value of v

Assignment Help Macroeconomics
Reference no: EM131154763

A seller offers a good with value v ∈ {0, . . . , 10}, i.e., v is one of these 11possible values. The seller knows the exact value of v, but a potentialbuyer only knows that each value of v is equally likely (it is uniformly2 distributed). The buyer makes an offer b and the seller accepts the offerif and only if b ≥ v.

(a) What is the expected value of v?

(b) What is the expected value of v, given that the seller accepts theoffer?

(c) What is the buyer's equilibrium value of b?(d) Explain this result.

Reference no: EM131154763

Questions Cloud

Approach a professor regarding a disagreement about grades : What is the best way to approach a professor regarding a disagreement about grades? I have contacted the professor and sent additional info to back up my position (actual research and not opinion) but she will not budge. This has led to a reducti..
Analyze the bubble sort method of sorting data : Analyze the bubble sort method of sorting data? Analyze the selection sort method of sorting data?
Technological change increases structural unemployment : If technological change increases structural unemployment, why do most governments and economists encourage such change?
How you will use this information to create a marketing plan : During the analysis stage, you consider external factors that pose possible threats to or provide opportunities for your organization and compare these factors against your HCO's internal operation to diagnose its strengths and weaknesses. Many HC..
What is the expected value of v : (a) What is the expected value of v? (b) What is the expected value of v, given that the seller accepts theoffer? (c) What is the buyer's equilibrium value of b?(d) Explain this result.
What does it mean to be a subtle racist : What does it mean to be a subtle racist? Please include a referenced definition and example. Why could there be significant differences in perceptions and values of members within the same ethnic group
New point on the aggregate demand curve : 1) At an initial point on the aggregate demand curve, the price level is 125, and real GDP is $10 trillion. When the price level falls to a value of 120, total autonomous expenditures increase by $800 billion. The marginal propensity to consume i..
Review the given reading reflection : Given the reading reflection.  - The Reading Reflection Topic is: "The Help : Silent Shout Out to the World" - Check for grammar and a diction.
Primary and general objective of central banks : What is the primary and general objective of central banks?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Computation of markup price

The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. What price should the manager charge for the calculators?

  In what ways is economic globalization responsible

What are the issues surrounding the sovereignty of states and their governments' ability to regulate their economies? In what ways is economic globalization responsible? In what ways is it not responsible?

  Effect of importing cheap manufactured goods

What is the effect of importing cheap manufactured goods from out country to the local manufacturers?

  What is ndp and net exports

What is NDP, Net exports, Govt. taxes minus transfers and disposable personal income Personal Saving

  Adverse technological shock on the labor market

Describe three ways we can use macroeconomic analysis, with one original example for each way - effects of an adverse technological shock on the labor market and on the output market.

  Graph the is and lm curves on a single graph

Public Affairs 854 - Problem Set 2. Graph the IS and LM curves on a single graph. Show the vertical intercepts, the slopes, and the intersection. Solve for equilibrium income. Show your work

  How the supply of loanable funds will shift to the right

The supply of loanable funds will shift to the right if either: A) Tax reforms encourage greater saving or investment tax credits were increased B) The budget deficit became larger or tax reforms discouraged savings C) The budget deficit became large..

  Explain how much will your companys total revenues

Explain how much will your company's total revenues revenues from both products change if you increase the price of good X by 1 percent.

  Fiscal policy in the current economic situation

Please detail the possibilities of using fiscal policy to stimulate economic activity in Denmark in a situation of economic stagnation among the most important trading partners.

  What s the opportunity cost

Alex works 40 hours a week in the store but receives no compensation. - what s the opportunity cost?

  Implementing fiscal and monetary policies

Some believe that the federal government has much influence on the country's economy when implementing fiscal and monetary policies. Do you agree that this is true? Why?

  Instructors training on how to grade is within the

instructors training on how to grade is within the instructor center.the fiscal and monetary policy and economic

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd