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What warnings would you give forecasters in using statistical demand equations for estimating consumer demand? How can the problems associated with using static equations in a dynamic world best be dealt with? Elaborate.
The Bureau of Labor Statistics generally uses 90% confidence levels in its reports. One report gives a 90% confidence interval for the mean hourly earnings of American workers in2000 as $15.49 to $16.11. If the null hypothesis states that the mean ho..
In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic-transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptab..
Let’s compare the incentives generated by two different types of public programs. The Aid to Families with Dependent Children (AFDC welfare before reform) provides an income subsidy, G, at 0 hours of work, it is taxed away at a rate t when an individ..
Two firms compete in quantities, selling identical goods, facing the demand function P(Q) = 130−q1− q2 where qi is the output level of firm i. Assume that firm 1 is more efficient than firm 2, MC1(q) = 10 and MC2(q) = 20. Find the NE quantities of th..
Discuss the relationships between total cost, output, and the price of labor and capital. Provide examples that illustrate how the prices of inputs affect managerial decisions. Consider, in particular, the current market for fuel and its implication ..
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
q1. do you think the newspaper company trusts you not to get more than one paper? no they understand the law of
Consider a facility that has a 30-year life, a replacement cost of $2 million, and an interest rate of 5%. Calculate the annualization factor. Show your work/ calculations using the formula. To implement the project, a new equipment is purchased at $..
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent..
What is the current plan/bailout for Greece? Which countries and organizations are giving the country money? What are the conditions that Greece must abide by to receive these funds?
Sketch a supply-demand graph for sunflower. Identify the price and quantity sold on the axes. Now draw a second demand curve to the left of the first. What happens to the price? What happens to the quantity sold?
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
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