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1. Describe the Arrow-Pratt measures of risk-aversion, both absolute (r) and relative rho.
2. Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
There is no word limit. The answers should be concise and contain relevant equations.
Trades are seasonal, with higher trades during the spring also summer quarters also lower trades during fall also winter quarters. Which inconsistents of the model are statistically significant.
The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors.
What is the most that Jo should be willing to pay the consultant for the information.
Illustrate what is the effective rate of protection on the process of turning corn into ethanol.
Despite being globally branded, Unilever still tweaked the Dove campaign from country to country. Elucidate why did it do this. What does this tell you about national differences in consumer behavior.
Conclude the supply function also inverse supply function for good X. Graph the inverse supply function.
If the annual real interest rate on the loans is 6%, explain how many car companies will buy a new car assembly machine.
Rental cars should be treated as perfectly divisible. Be sure to provide numerical coordinates for any particularly key point.
Conclude the change in demand when PX increases to 80. Conclude the exact amounts of the income also substitution effects for X.
In what sense can this be said to be unfavorable to the trade partner. Does this mean that the welfare of the trade partner has definitely declined.
Discuss how government intervention to address a market failure might worsen the situation. Provide an example of where government intervention does work and why that is so.
Assuming that the income effect is negligible, how much will he be hurt if the cost of strawberries goes from $1 a pint to $2 a pint.
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