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Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the taste-for-discrimination model suggests that competition might reduce discrimination in the long run. Explain the difference.
Suppose that the inverse demand curve is: p(q) = a - bq; and the cost function is: c(q) = cq: Draw a graph showing the demand curve and marginal cost curve, with dollars on the y-axis and quantity on the x-axis. Show the quantity on that graph that m..
Discuss how the wage rate and level of employment will be determined if
Winners of the Lucky Dog Lottery can take $30 Million now or payments of $ 2.5 million per year for the next 15 years. These are equivalent at what annual interest rate? =
The three families are considering putting in streetlights on Main Street and are trying to describe how many lights to install. The table below shows each family's willingness to pay for each streetlight.
Assume you are the manager of a medium-sized industry which operates in an industry which has a four-industry concentration ratio
Considering the correlation of a company to the economy which would you chose: A company positively, negatively, or not correlated?
Since the movie, Avatar, 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies on The price elasticity of demand on 2-D movies? The total revenue of movie theater..
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. Fill in the blanks The team earns $....... in..
Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for the remaining amount. Payments were made monthly. the nominal annual interest rate was 6% after 10 years (120 payments) he sold the house and paid the ..
There is a 50 percent chance of making $0, a 40 percent chance of making $100, and a 10 percent chance of losing $100. Calculate the expected value and variance of the payoff. How does your estimate compare to the previous problem?
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and..
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