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When Kraft recently bid $16.7 billion for Cadbury, Cadbury's market value rose, but Kraft's market value fell by more. What does this tell you about the value-creating potential of the deal?
Steve’s preferences for hamburgers (X) and chicken sandwiches (Y) can be represented by u(X,Y)=X 0.5Y 0.5. Graphically decompose the total effect of the price change into an income effect and substitution effect. Plot hamburger consumption on the hor..
For each of the following, state whether it is considered money in the United States. Explain why or why not.
Find out and read two articles about a recent controversial issue involving either the Federal or state government and eminent domain.
Explain how can each of the 10 principles be applied in an example or expeerience with which you are familiar.
Jack sees commuting by bus and train as perfect substitutes (U = B + T), that is, he would exchange one commute by bus for one commute by train. The price of a bus ticket is $1.50 and the price of a train ticket is $ 2.00. Jack has $6.00 to spend on ..
Illustrate what is the capital account balance. Illustrate what is the financial account balance.
In 2014, the average debt for college student loans is $28,700. This amounts to a $330 monthly payment for a “standard” loan repayment plan over 10 years. What monthly interest rate is being charged on this typical student loan?
If this industry acts like a monopolist in the determination of price and output, compute the profit-maximizing level of price and output
Compute the elasticity of trades with respect to every inconsistent in the demand function.
Equivalent to selecting the output where the spread between total revenue and total cost is greatest.
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be leived.
Consider a game of delegation. An uninformed principal must delegate some task to an informed agent with preferences imperfectly aligned. I'm aware of plenty of literature that studies these kinds of problems when there is a continuous action space, ..
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