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Consider the model of Section 18.5. What types of organizational forms might emerge when contracting institutions are imperfect (i.e., when μ is very low)? In particular, discuss how vertical integration and repeated interactions between suppliers and producers might change the results discussed in that section. How would you model each of these?
consider a perfectly competitive market with 10 firms firm 1 firm 2...firm 10. firm 1 through firm 9 have the same cost
Robertson Inc. wishes to set aside lump sum money to withdraw from and invest in automating parts of its business over the next 5 years. This money is expected to earn compound interest at the rate of 10% per year.
Suppose that the local gym has a marginal and average cost of 10 per visit. Calculate the profits associated with the following combinations of annual fee (T) and per visit fee (P), and determine which scheme generates the highest profit.
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.
A member of a successful music band is considering leaving the band to pursue a solo career. If she stays with the band she estimates that there is a 60% chance that the band will continue to be successful and she would earn $1.7 million over the ..
A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful reces..
The demand for money in a country is given by Md= 10,000-10,000r +Y. Where Md is money demand in dollars,r is the interest rate (a 10 percent interest rate means r=0.1), and Y is natinal income. Assume Y is initially 5,000.
Find the pure strategy Nash equilibria for this game. (List the beliefs and actions, not just the final outcomes.) Are these outcomes Pareto efficient? Why or why not?
The Alpine Bagel Co. is evaluating pricing for Bagels in it's outlet in the student commons. Their in-house consulting team estimated that the daily demand for Bagels in the area to be the following Q = -15P + 10Ps - 20Pc +16I
a hospital emergency room needs the following numbers of nurses: Day Mon. Tue. Wed. Thur. Fri. Sat. Sun. Min no. 4 3 2 4 8 6 4Each nurse should have two consecutive days off.
Suppose that: y-sqwiggly line on top=1/2Y1+1/3Y2+1/6Y3 a) show that y-sqwiggly line on top is a linearestimatorb) show that y-sqwiggly line on top is an unbiasedestimator
Consider a perfectly competitive market in which the market demand curveis Dd =10-Pd andsupplyisQs =2Ps. a) Find the equilibrium price and quantity on this market. b) Suppose the govt imposes the price ceiuling of 3$ per unit. How much is supplied
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