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A recent national survey found that high school students watched an average (mean) of 7.2 DVDs per month with a population standard deviation of .90. A random sample of 35 college students revealed that the mean number of DVDs watched last month was 6.20. At the .05 significance level, can we conclude that college students watch fewer DVDs a month than high school students? State the decision rule?
Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $260. The inverse market demand for this product is P = 800 - 4Q. a. Determine the equilibrium level of output in the market. b. Determin..
Assume you are an aid to a government official deciding on some recently proposed excise tax on the welfare of her constituents.
Which interest rate represents the opportunity cost of holding money - the real or the nominal interest rate? Explain and argue intuitively why the nominal interest rate (eg, the yield on a riskless bond) cannot fall below zero.
Compute the premerger Herfindahl-Hirschman index (HHI) for this market. Suppose that any two of these firms merge. What is the postmerger HHI.
Illustrate what is the estimated size of the union salary advantage. How might this advantage diminish the efficiency with which labor resources are allocated.
Determine which best supports reason for why the use of teams by Anacorp Corporation is considered critical to its ability to develop and commercialize innovative products?
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
Elucidate the mechanisms through which improvements in population health can lead to improvements in income levels.
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Briefly discuss the methods traders use in attempting to evade the difficulties they face in markets that involve "Lemons".
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