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Assume that you have an app on your smart phone that allows you to walk up to any item in the supermarket, have your phone recognize it, and then display all the necessary information about the product. Imagine that the app even tells you where and how it is made, and when it is predicted to go on sale next. This app would mean that a firm selling goods in this setting would need to advertise, because
Which of the following can cause the usual OLS t statistics to be invalid (that is, not to have t distributions under H0)? Heteroskedasticity. A sample correlation coefficient of .95 between two independent variables that are in the model. Omitting a..
Consider a two-firm industry. Firm 1 (the incumbent) chooses a level of output q1. Firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. Find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm ..
If television sets are sold in a perfectly competitive market, calculate the annual number sold. Under what consiquences will the market equilibrium be efficient.
The current price of scrap steel is $6/pound, but it was 4.87/pound just 4 years ago. What is the average inflation rate for scrap steel? Assuming in the last year of a project that Revenue was $100,000, Expenses were $50,000, Working Capital Release..
You have been asked to produce a forecast for your company's new product (bottled water). List out and briefly describe four factors you would consider before giving the forecast.
If Jim is putting money into a savings account. He puts in $100 monthly. At the end of each year he gets a $500 bonus from work that he also deposits. If the savings account has a 5% interest compounded monthly, what will his future savings be in 5 y..
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
Explain how this may be related to the problem of adverse selection. What could banks do to try to reduce this problem?
Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quantity of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibrium r..
The PC World article states that Intel needs to have their new class of fabrication plants (Fabs) produce at a specified volume. Show why this is the case using the concept of cost curves to describe firm behavior such as that found on page 206 of th..
No security leaks had been found In accepting Piraeus resignation President Obama praised Piraeus leadership during the Iraq and Afghanistan wars and said By any measure through his lifetime of service David Petra us has made our country safer and s..
Consider smoking in a classroom, where students have the right to clean air. What types of externality does smoking in a classroom convey? Explain. How could this externality be solved according to Coase Theorem? Explain. How would it be solved using..
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