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In a large city it was found that summer electricity bills for single-family home followed a normal distribution with standard deviation $100. A random sample of 25 bills was taken. a. Find the probability that the sample standard deviation is less..
Can you describe a situation in which the marginal 258∂ CHAPTER 11 INTRODUCTION TO IMPERFECT MARKETS costs of an additional driver on the highway might be high? How might society deal with this problem?
Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.
Verify that Theorems 7.13 and 7.14 from Chapter 7 can be applied to the Ben-Porath and lead to (10.14) as necessary and sufficient conditions for an optimal path of human capital investments. [Hint: use a similar argument to that in Section 7.7 in..
a. Based on the two-period model covered in class, write down thefirms budget constraint in period t. b. Derive the firm's demand for labor in period t as a function ofwages, interest rates and a.
What is your feeling about the responsibility the market system bears for these problems in the United States?
Write an equation that summarizes the cost function for her operation, as well as equations that summarize the marginal, average variable, average fixed, and average total costs of selling fresh drinking water at the kiosk.
In the absence of trade, what would the price of apples in terms of bananas be? Why?
Let P indicate total profit. Develop a mathmatical model for the total profit realized from an order for x pairs of shoes.
Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy b. Consider another economy in which the unemployment rate over the next three year..
Using the information in Table 1, would you prefer to use Model 1 or Model 3 to estimate the impact campus crime has on new student enrollment? What evidence is there to support your answer
Suppose the initial equilibrium price of haircuts is $12. Draw demand and supply graphs to show the short-run and long-run effects
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