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The state of California set up its own earthquake insurance program for homeowners. The rates vary by ZIP code, depending on the proximity of the nearest fault line. However, critics claim that the people who set the rates ignored soil type. Some houses rest on bedrock; others sit on unstable soil. What are the implications of such rate setting?
Draw an extensive form representation of this game. Can you draw more than one extensive form representation? Then convert this extensive form representation to a normal form representation
Grain prices go the way of the oil price Rising grain prices have started to impact the price of breakfast for millions of Americans-cereal prices are rising.
Suppose there is a monopoly in the market. What is the optimal quantity produced What is the monopoly price Denote optimal quantity and price with y*m, p*m. Represent the equilibrium in a graph in the (y, p) axis.
For the declining-balance method, Wang Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2009, 400; 2010, 4,500; and 2011, 5,000.
Why do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be more frequent and more severe in poorer countrie..
Many states have passed laws that immunize owners of undeveloped land from liability if they open the land for recreational use. What outcome in (a) will result under this rule?
Defenders of Wildlife. Each of the 80,000 citizens in a particular county is willing to pay $0.10 to increase the number of wolf litters by one. Each litter of wolves imposes a cost of $5,000 in livestock losses to ranchers.
Computer Products Corp. sells peripheral equipment used by both private businesses and the government. Due to a recession, Computer Product's sales have declined by 100,000 units and it now has 200,000 units of excess capacity.
Toget started, the owner of Sound Devices spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. In 2010, the owner of Sound Devices could have earned a 15 percent return by investing in stocks of oth..
You are to write a paper, convincing the president of the company of your conclusion and explaining what the company's pricing strategy should be.
What will be the new level of real output if inflation expectations are wrong and the actual price level rises to 2.0?
what is the equivalent uniform annual cost per machine (years1 through 5) at an interest rate of 12% per year?
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