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When someone is promoted from middle-management to top executive, her salary often doubles or more .Why does this seem puzzling, from the perspective of the theory of competitive markets? Why might a profit-maximizing firm offer such a large raise?
"Members of CORE said there are about 110,000 people waiting for an organ donation, but only about 25,000 transplants each year" (OVMC). Whether you agree with the concept or not, research the topic of organ donation, challenge the myths behind th..
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you co..
Suppose 1 year Treasury-bills were currently yielding 5.5%. Also suppose that a bank estimated that a particular loan applicant had a 30% chance of defaulting on a one year loan and that in the event of default the bank would recover only 25% of i..
Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. If GDP and consumption both rise by $10billion in the second round of the process, what is the MPC in this..
A firm is considering two alternatives that have no salvage value. A Initial Cost $10,700 Uniform Annual Benefits 2,100 Useful life, in years 8 B Initial Cost $5,500 Uniform Annual Benefits 1,800 Useful life, in years 4
Assume the Following IS-LM Model E Expenditure sector Sp = C + I + G + NX C = 110 + (2/3)YD Calculate the equilibrium values of private domestic investment (I), tax revenues (TA), and real money demand (md). How much of private domestic investment (I..
If a random sample of 400 customers is selected, what is the probability of Type I error using this decision rule?
H-P is said to be the leading seller of PC's in the U.S. with 27% share of the PC market. If a researcher selects 130 recent PC purchases, use the normal approximation to the binomial to find the probability that more than 39 bought a H-P computer
Casper's utility function is 3x + y, where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is x^2, the price of cheese is $8, and Casper's income is $174, how many units of cocoa will he cons..
Taking account of the discount movie scheme, by how much could the University raise Alan's tuition fees?
Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q It finance department has estimated its total cost function as TC = 24,00..
Now suppose the city council of Metropolis decides to curb congestion in the downtown area by limiting the number of taxis to 6. Applicants participate in a lottery and size winners get a medallion (a permanent license). What is the new equilibriu..
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