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In an essay format please answer the following two questions:
1. How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility?
2. How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probability from a decision-maker? What is the difference between risk, uncertainty and ambiguity?
Suppose that, instead, the market quantity demanded at a price of $1.33 is only 75,000. How many firms do you expect there to be in this industry.
Moli Labs Inc. is developing medical research on anti-memory loss pill. The lifetime value of the patent would be V = $840 (in millions). The company can invest in many separate identical labs. Each lab costs $21 million to operate, and each has a pr..
Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.
A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers to be productive and they hire you as a consultant.
With a focus on the concepts introduced in Granovetter (2005), write a brief (1-page) essay comparing his discussion of the Fur of Sudan and Arab merchants with the description in TechCrunch1 of the tech-funding needs in London and the arrival of Sil..
Explain four problems with the argument that trade protection is needed to protect American jobs. Describe the economic reasons why businesses use off shoring.
Choose at least two (2) risk implementation considerations you need to decide (in advance) within a project. Provide a rationale for your response.
A used car dealer purchased my 1992 Ford Tempo for $1,000. He paid a worker $200 to wash it. He purchased four tires for a total of $400 to replace the existing tires on the car. He sold the car for $4,000. All these economic activities took place in..
Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
q1. assume which parliament passes a law to permanently cut taxes starting the next year. assuming which consumers are
For the closed-economy, one-period model, suppose that U(C,I) = In C + βl, and F(K,N)= ZK^(a)N^(1-a), where β>0 and 0
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