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You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:*If both of you work hard, you both get an A, which gives each of you 40 units of happiness.*If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.*If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.*Working hard costs 25 units of happiness.a. Fill in the payoffs in the following decision box:
Your Decision Classmate's DecisionWork/Work Your: Classmate:Shirk/Work Your: Classmate:Work/Shirk Your: Classmate:Shirk/Shirk Your: Classmate:
b. What is the likely outcome? Explain your answer.c. If you get this classmate as your partner on a series of projects throughout the year, rather than only once, how might that change the outcome you predicted in part (b)?d. Another classmate cares more about good grades: He gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would he also want you as a partner?
You purchased a $10,000.00 face value commercial bond for $9000.00 on June 1, 2007. The bond pays $500.00 interest at the end of each six months. It is now June 1, 2008. Thus, you have already received two $500.00 payments. The bond matures in fiv..
Explain why we are using per capita data for food rather than the total value as the dependent variable and examine the residuals of your estimated equation to determine whether any of your years might be considered an outlier in the regression.
A firm sells its product in a perfectly competitive market where other firms charge a price of $130 per unit. The firm's total costs are C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run?units
Your company has purchased a large ne truck for over thr road use(asset class 0.26).it has s cost basis of $180,000.With additional options costing $15,000,the cost basis for depreciation purposes is $195,000.its ,MV at th end if five years is est..
Smartphones require superconductors, and the production of superconductors is heavily polluting due to the use of many chemicals in the process. The damages to society are given by Ds = 10x2.a) Find the private marginal benefit, the private margina..
In a population Y=100 and Y=43. Use the central limit theorem to answer the following questions a. In a random sample of size n=100, find P(Y or = 98).
How much consumer surplus do consumers receive when Px = $45? c. How much consumer surplus do consumers receive when Px = $30? The demand curve for product X is given by QXd = 360 - 2PX.
The football coach at Midwestern university was given a 5 year employment contract that paid $225,000 the first year, and increased 8% uniform rate in each subsequent year. At the end of the first year the alumni demanded that he be fired.
A Man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 5% compounded annually. What deposit must be made..
Assume that current wind farms produce 2.5 W/m2. Succinctly explain whether you would expect the average power per square meter of wind farms to rise or fall as the production of wind energy expands to, say, 10% of our primary energy consumption...
An Economics section at a large university keeps track of its majors beginning salaries. We address the question of the value of taking econometrics
The demand curve for the firm's output in the second market is P2 = 80 - 2Q2, where P2 is the price of the product and Q2 is the amount sold in the second market. The firm's marginal cost curve is 5 + Q, where Q is the firm's entire output (destin..
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