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Suppose we are in a mining boom. BHP is also negotiating with suppliers of machinery, in order to build and equip mines. They estimate that every excavator they can source will mean they can earn an extra $2m in profits, up to 30 excavators. Caterpillar can produce up to 20 excavators at a marginal cost of $500k each, and Komatsu can produce up to 20 excavators at marginal cost of $800k each. How many excavators do they source from each, and what is the range of possible prices?
What is the implication of the diminishing returns to physical capital for economic growth of different countries over time?
Can you make a decision of what part of the business cycle the U.S. economy is currently in? Why? What factors lead you to this conclusion?
1) Suppose annual monthly murders in Medellin follows a truncated Poisson distribution with a mean of 128 murders per month with a standard deviation of 18. Wha
Your client, Tom, has come to you inquiring about retirement. He wants to know how much he needs to be saving at the end of each month to meet his goal
Consider the Law of Demand, the Law of Supply, and the Price Elasticity of Demand. Explain how a solid understanding of these, when combined, can help a business improve its performance (e.g. increase sales revenue).
Select two subject and explain how they fit into economics- what do the subject have in common? How does it impact how you think about economics? What can you learn from it? and how can you apply it?
What is the agent's Bayesian posterior condition and Show that the agent views her friend as a Blackwell experiment. (ii) What is the agent's Bayesian posterior
What is the MC = Mr rule and profit maximization and does this rule represent a socially optimal position regarding price and quantity of goods and services?
In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.
Airline ticket prices seem to be impossible to predict or explain. Yet, in the last year, average ticket prices have been on a steady decline.
An important decision places Christmas holiday celebrators: To buy real or artificial trees? A market research firm reported that 62% of individuals polled
Suppose South Korea imports $4 billion in goods and services, and exports $2.5 billion in goods and services. South Korea’s trade balance is ____________. This trade balance is called a ____________.
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