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Suppose that five bidders with values of $500, $400, $300, $200, and $100 attend an oral auction. Which of these is closest to the winning price?
Describe an algorithm for solving the shortest path problem with these turn penalties and apply it to the shortest path example in Figure 4.15(b). Assume that α = 5.
The firm believes that AVC varies with the level of output and wages. Alan Anderson, the economist in the research department of the firm, collects monthly data on output (the number of diskettes produced), average variable costs, and wage rates p..
What is the likely post-merger bargaining outcome?
For each plant size, draw the corresponding short-run average cost curve and explain briefly why that curve should be where you drew it and how it is consistent with the other curves.
A new bridge across the Allegheny River in Pittsburg is expected to be permanent and will have an initial cost of $30 million. This bridge must resurfaced every 5 years at a cost of $1 million. The annual inspection and operating costs are estimat..
The credit score of a 35 year old applying for a mortgage at Ulysses Mortgage Associates is normally distributed with a mean of 600 and a standard deviation of 100. Within what range would the middle 80 percent of credit scores lie
Identify the equilibrium point and price level. Illustrate how fiscal policy can close the contractionary gap.
A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10..
In the past, 20% of applicants for admission into a master's program had GRE scores above 650. Of the 88 students applying to be admitted into the program in 1981, 22 had GRE scores above 650. Do the 1981 applicants have greater GRE scores than pr..
The City of New York has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. Paying this salary, each of the 199 firms makes a normal profit on $500,000 in revenue.
Producing umbrellas requires inputs of fabric, metal, and labor. Umbra's Umbrella Factory experiences increasing returns to inputs of labor up to a certain point, and constant returns for all levels of production thereafter. There is no range of d..
Assume that the manufacturer can tailor a take-it-or-leave-it offer for each individual retailer, of any form desired. To maximize her profits, what should the manufacturer do?
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