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Problem #1
Discuss where valid instruments come from. Part of your explorations must deal withchecking the validity of instruments and what the consequences of weak instruments are.
Problem #2
Discuss the Overidentifying Restrictions Test. What is meant exactly by "overidentifi-cation?" State the null hypothesis. Describe how to calculate the J-statistic and whatits distribution is. Use an example of two instruments and one endogenous variable toexplain under what situation the test will be likely to reject the null hypothesis. Whatdoes this example tell you about the exactly identified case? If your variables pass thetest, is this sufficient for these variables to be good instruments?
A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. to maximize profits in the long-run, the monopolist should do.
you are the administrator for a medical practice. assume all of your practices patients are covered by insurance.
Each of the following firms possesses market power. Explain its source. Merck, the producer of the patented cholesterol-lowering drug Zetia
A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:
assume that the price of silk ties in a perfectly competitive market is 19 and that the typical firm confronts the
Provide a plot the time series data on U.S.
discuss the overall importance of motivation as it relates to management. provide a substantive 150 to 250 word initial
Define the Marginal Product of Physical Capital. Define the Value of Marginal Product of Physical Capital.
You are hired by the Chair of the Federal Reserve to manage the trading desk at the New York Fed and the Chair tells you that he wants you to increase the money supply (M1) by 33.33 percent. They warn you to be careful because in these uncertain time..
Choose one company from the market structure of monopolistic competition and one company from oligopoly. State which characteristics fit and make these market structures fit to the description.
According to theory, if you lower interest rates, business investments and consumer purchases of large durable goods are supposed to increase. In return, this is to help pull us out of a recession. However, this policy of extraordinarily low inter..
how do changes in the business environment cause changes in supply and demand? cite and explain at least two examples
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