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Consider two lotteries. The outcome of each lottery is the same: 1, 2, 3, 4, 5, or 6. In the first lottery each outcome is equally likely. In the second lottery, there is a 0.40 probability that the outcome is 3, and a0.40 probability that the outcome is 4. Each of the other outcomes has a probability 0.05. Which lottery has the higher variance?
Does your answer to part (a) depend on whether the monopoly is granted as a political favor or auctioned to the highest bidder?
What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued?
Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12. How much total profit is the firm earning ..
Why are industries like computers not good candidates for infant industry protection?
What is the value of the multiplier d. Calculate the saving function for Freedonia. Plot this sav- ing function on a graph with equation (2). Explain why the equilibrium income in this graph must be the same as in part b.
A random sample of 100 observations from a population has a mean of 60 and a population standard deviation of 18. a. What is the point estimate of the population mean b. What is the interval estimate of the population mean (a=.05) c. What is the poin..
suppose that the equation for the aggregate demand is y 7000 2400p. in this real business cycle model the equation for
A certain fluidized-bed combustion vessel has an investigation cost of $ 100,000, a life of 10 years, and negligible market (resale) value. Annual costs of materials, maintenance, and electric power for the vessel are expected to tota
A firm produces output according toa production function Q = F(K,L) = min {2K,4L}. a. How much output is produced when K =2 and L = 3 b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing in..
In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..
What is the sample standard deviation of weights and calculate the change in weight
Can an increase in ι make the South worse off? Explain the intuition for this result.
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