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A. Show that in the insurance signalling game, if the consumers have finitely many policies from which to choose, then an assessment is consistent if and only if it satisfies Bayes’ rule. Conclude that a sequential equilibrium is then simply an assessment that satisfies Bayes’ rule and is sequentially rational.
B. 1. Is there a deadweight loss if a firm produces the quantity of output at which price equals marginal cost? Explain.
2. It has been noted that rent seeking is individually rational but socially wasteful. Explain.
3. Make a list of real-world price discrimination practices. Do they meet the conditions posited for price discrimination?
4. Make a list of market monopolies and a list of government monopolies. Which list is longer? Why do you think this is so?
Currently there is a debate about whether high employment rates in the US are the result of cyclical factors or structural factors. Describe this debate? What impact might immigration have on the different types of unemployment?
How much must be deposited each month for 9 months at an interest rate of 6.9% per month to allow for a single withdrawal of $50,854.48 at the same time as the last deposit?
Jefferson Smurfit Company is a multibillion-dollar supplier of packaging materials. The tradesperson's action is typical of the corporation's trades philosophy
The marginal damage to your neighbor's business is a function of how many alligators you keep and the amount of money spent on a fence that separates your properties:
Was there a UFW-Almaden contract in effect when the Paicenes vineyard was leased by Heublein to Glen Ellen
Which is the safer investment, Company A Stock, Company B Stock, or a porfolio containing half of each If you make a lucky prediction about the prices of the stocks of the two companies, will you earn more or less if you invest in that company rat..
AutoTrader.com would like to estimate the number of years owners keep the cars that they purchased as a new vehicle. The following data shows the age of seven vehicles that were sold for the first time by their owners. Using this sample, the 90% conf..
When looking at a cheaper dollar, you will find that this will affect our economy. We are able to export more goods and services given the cheaper dollar. How do you think the US can support a cheaper dollar?
q1. when corporate income taxes are assumed to exist modigliani miller and the traditional theorists agree that capital
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?
What is the fixed cost of running this business for one year? What is the marginal cost of selling one set of earrings? Does the marginal cost change depending on quantity sold? If so, how? If Mel’s goal is to maximize economic profit, how many bags ..
In 1980, Stewie bought a Walkman for $29. If the price index was 25 in 1980 and the price index today is 129, then what is the price of the Walkman in today's dollars?
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