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Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the taste-for-discrimination model suggests that competition might reduce discrimination in the long run. Explain the difference.
Describe the nature oft eh incentive conflict between VCs and the managers, identifying the principal and the agent.
One of the principles for the code of professional conduct for agents, states:
Consider a market where the inverse demand is P = 1200 − Q. Firm 1 and firm 2 compete by setting their supply quantities. Both firms have a unit-cost equal to 300. Assume we can analyze the interaction between firm 1 and 2 as a simultaneous-move game..
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Are common resources public goods? Why?
According to the imperfect-information model, when the price level rises by the amount the producer expected it to rise, the producer:
Discuss some of the things that you learned from this class that is contrary to what you have heard in the media about macroeconomics and government fiscal and monetary policy.
Suppose that a consumer's preference between the good x and y are represented by the utility function u(x,y)= x+y. If these two goods have the same price, describe the optimal consumption choices of this consumer.
The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal, P is the price of cereal, A is the level of advertising and M is income.
Consider an art auction with two bidders in which the auction procedure is that described in the text. Suppose that the auctioneer raises bids by multiples of one thousand dollars starting at the buyer's reservation price of $2,000 and stopping when ..
q.in this problem we consider the differences between the competitive monopoly and cournot equilibria under the same
Does the production technology exhibit increasing/decreasing/constant returns to scale.
Illustrate what is currently occurring to the supply also demand for labor also its effects on wages, union membership, also other labor force related topics.
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