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The sunk cost fallacy
You have good tickets to a basketball game an hour's drive away. There's a blizzard raging outside, and the game is being televised. You can sit warm and safe at home and watch it on TV, or you can bundle up dig out your car, and go to the game. What do you do?
Pick a brand. Assess its efforts to manage brand equity in the last five years. What actions has it taken to be innovative and relevant? Can you suggest any changes to the company’s marketing program?
How is each of the following events likely to affect the value of the dollar relative to the euro?
Other things equal, when Europeans want to buy less grains from the United States, Question 3 options: U.S. imports increase. U.S. exports increase at every level of domestic income. U.S. exports decrease at every level of domestic income. U.S. gover..
What would be the total variable inspection cost at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within
According to Coase's theory of the firm, why do firms exist? How do firms contribute to the efficiency of the market economy in ways that 'networks of independent contractors' do not? How are the boundaries of the firm best established?
Children in poor neighborhoods have bleak outlooks on life and do not see much gain to studying. A recent experiment is paying children in poor neighborhoods $100 for each “A” they earn in a six-week grade reporting cycle. How does this affect behavi..
If you were a Moody's analyst in May of 2008, would you recommend that Moody's downgrade Iceland's Aaa soverign-debt rating? Why? Why not?
Suppose that market demand for golf balls is described by Q = 90 − 3P, where Q is measured in kilos of balls. There are two firms that supply the market. Each firm has a constant unit cost of 10. Suppose the firms compete in quantities.
The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:
Acceptance sampling is a statistical method used to monitor the quality of purchased parts and components.
A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income received by each quintile of this income distribution.
Further assume that the marginal cost of producing a pack of cigarettes is $6, and that the market for cigarettes is perfectly competitive. Assume that each pack of cigarettes smokes does $6 worth of health damage to the smoker in the form of incr..
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