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It is known that some fraction d of all new cars are defective. Defective cars cannot be identified as such except by those who own them. Each consumer is risk neutral and values a non defective car at $16,000. New cars sell for $14,000 each, and used ones for $2,000. If cars do not depreciate physically with use, what is the proportion d of defective new cars?
Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
Based on these data, describe the relevant relationship between the price of a hamburger and the quantity consumers are willing to purchase, using a verbal statement, a numerical table, and a graph. Which model do you prefer and why?
Use simple exponential smoothing with a=0.33 to forecast the tire sales for February through May. Assume that the forecast for January was for 22 sets of tires. Months / Auto Tire Sales Jan / 28 feb / 21 ..
A firm with market power produces a chip at a marginal cost of $10 per unit and zero fixed costs. It faces a demand function given by P = 50 - Q. What are the profits of the firm at the optimal price and output combination
Describe the ways in which the government provides a safety net for banks. How has that safety net evolved over time?What four main factors determine whether a bank merger or acquisition will be allowed?
A monopolist's demand curve is described by Q = 50 - 0.5 P The firm's cost function is TC = 10 + 2 Q a) Find the profit-maximizing quantity and price. b) If the industry is regulated in a way that requires it to set P = AC
The return on quality can be defined as the profit increase divided by the cost of the quality improvement program.
Suppose the community has the right to clean water. The factoryowner wants to increase the level of pollution from the current 10gallons per day to the optimal level. What is the maximum totalpayment that the factory will be willing to offer
Suppose that the demand function for apartments in a competitive market is given by D(p)=200-10p. If there are 20 apartments available, compute the equilibrium price and quantity of apartments.
Do the same for x2. After, solve the consumer's optimization problem using the Lagrange multiplier method. Interpret the first-order conditions in terms of the slope of budget constraint and indifference curves.
Then draw the budget line and find the utilitymaximizing combination of rides and games.
your company asks you to analyze two mutually exclusive projects for the coming year. project a will have an initial
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