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The intuitive criterion by Cho and Kreps is a refinement to minimise the set of perfect Bayesian equilibrium in signalling games. What would a simple and intuitive example to explain this criterion be? Assume any undergrad student should be easily able to appreciate the refinement through the example.
Use supply and demand curves to help you determine the impact that each of the following events has on the market for beef. New genetic engineering technology enables ranchers to raise healthier, heavier cattle, significantly reducing costs.
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Assume there is a lapse from full employment. Compare the solution offered by the classical economists with that offered by J.M. Keynes. How do these solutions differ from those offered by supply siders and monetarists? You might also mention the vie..
what are the risk in management when you don''t have a fix plan of what you want o accomplish?
Using your own words, in no more than 10 short clear sentences; describe each of the following financial instruments, including the kind of claim (debt or equity), maturity (money market or capital market), risk, and liquidity characteristics, and an..
Assume that economy starts at equilibrium and mpc = 0.8. Illustrate what would be effect of a $500 increase in taxes once all rounds of multiplier process are complete.
Elucidate how the central bank manages a nation's monetary system. Outline the stated direction of recent monetary policy in the United States.
Air Express bought a used Boeing 757 plane 5 years ago for $35,000,000. At the time the plane was bought, it was estimated that it would have a service life of 10 years and its salvage value at the end of its service life would be $10,000,000. Air Ex..
In the typical signaling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur i..
Assume that for a perfectly competitive firm marginal revenue equals rising marginal cost at 100 units of output. At this output level, the firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $10 per un..
The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000. How much output is being produced
Illustrate what is economy's aggregate consumption function. Illustrate what is marginal propensity to consume for economy.
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