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A. Show that in the insurance signalling game, if the consumers have finitely many policies from which to choose, then an assessment is consistent if and only if it satisfies Bayes’ rule. Conclude that a sequential equilibrium is then simply an assessment that satisfies Bayes’ rule and is sequentially rational.
B. 1. Is there a deadweight loss if a firm produces the quantity of output at which price equals marginal cost? Explain.
2. It has been noted that rent seeking is individually rational but socially wasteful. Explain.
3. Make a list of real-world price discrimination practices. Do they meet the conditions posited for price discrimination?
4. Make a list of market monopolies and a list of government monopolies. Which list is longer? Why do you think this is so?
What other variables should be considered when determining what is reasonable in terms of maintenance expense
Assume that marginal utility of good A is 4 times the marginal utility of good b. The firm can compute all points on its total cost curve if it knows.
q1. the standard of living for the poorest third of the world is falling behind the standard for the rest of the world
Explain why the different definitions are important also explain the different procedures of the money supply.
Estimate the likely market evolution of the BRICs (Brazil, Russia, India, and China) over the next decade. What economic indicators might companies monitor to best guide their investments and actions? Identify three implications of the emergence of t..
Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cah inflows of $19,000 per year for 11 years. If the discount rate is 16..
Using the current specifications, a new road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years for $1.1M. If the highway department's interest rate is 6%, which specification is preferred?
Explain the debate on equal rights, especially as related to marriage, for gay men and lesbians continues. Would you classify this as an issue or as a problem.
Draw a cash flow diagram for just the tax amount due to the depreciaiton, including the gain from this portion at EOY 8. Calculate the present worth of this cash flow. This is the amount gained by depreciating the property.
q.desired consumption is 100 0.8y - 500r - 0.5g and desired investment is 100 - 500r. real money demand is p y -
Discuss political economy of euro. What are likely economic effects of euro. What are its likely political effects. How is euro supposed to solve EU's political problems. Explain
TT Drinks Company was established a hundred years ago and currently employs over 300 people. The company produces and sells a range of black, green and flavoured teas and fruit infusions. TT's last Director of Marketing was away from work with illnes..
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