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A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price. An auctioneer faces two bidders, each with a value of either $30 or $80, with both values equally probable. What reserve price should the auctioneer set, and what is the expected revenue from auctioning the item with and without a reserve price?
Proponents of trade liberalization argue that freer trade might actually improve the quality of the environment
Calculate the arc price elasticity implied by the initial response to Z-Best's price increase and calculate the effective price reduction resulting from the coupon promotion.
The federal government is planning a hydroelectic project cor a river basin. In addition to producing electric power, this project will provide flood control, irrigation, and recreational benefits. Find the benefit-cost ratio for each alternative.
Because of America's large budget deficits, the government is borrowing much from foreign countries. There are experts who believe, it is not economically wise for foreigners to hold so much of U.S assets. However, there are those who think the si..
New Horizons Airlines wants to forecast the mean number of unoccupied seats per flight to Germany next year.To develop this forecast, the records of 49 flights are randomly selected from the files for the past year, and the number of unoccupied sea..
Should U.S. national forests become privatized (sold to private owners)? Why or why not? Be sure to back up your response with economic analysis and reasoning.
The effect of rising energy prices for the economic wellbeing of households and the likely effect of increases in the cost of traditional sources of energy for the energy consumption patterns of Australian households
What is the competitive equilibrium price per ride and what is the equilibrium number of rides per day? How many boats will there be in equilibrium? In this competitive market, what is the aggregate profit?
What is the free trade level of rice consumption in Japan, how much rice do domestic farmers produce in Japan
Show how one can derive the change in market value of equity as a function of adjusted duration gap, asset size and interest rate shock.
What will be the effect of the following events on the market for French wine and the quantity consumed? Distinguish between the short-run and the long-run impact.
If your child is born today, how much will you need to put away per year, at end of each year through your child's 18th birthday, so that no additional payments need to be made after year 18
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