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Q. Assume you have invested in a new computer company whose profitability depends on 2 factors:
(1) Whether the U.S. Congress press a tariff raising the cost of Japanese computer (the tariff will increase profits)
(2) Whether the U.S. economy grows slowly or quickly (faster growth will increase profits).
a) Illustrate what are four mutually exclusive states of the world that you should be concerned about?
b) Past history suggests that the U.S. Congress will impose a tariff only if economy grows slowly. If this is true, is the investment more attractive to (a) a risk adverse person, (b) a risk loving person;
(c) a risk neutral person? Explain briefly this basis for your conclusions.
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One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.
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They could each decide to work a few extra hours on Saturday and earn more income. But they choose to play tennis or to relax around the house.
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
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A selfless person approaches Jones also Smith with a $100 bill also offers to sell it to the highest bidder but both the winning also losing did der must pay her their bids.
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Four students from your economics class are sitting in a local restaurant Talk about the marketplace for coffee.
Growth rates in follower nations such as South Korea also Hong Kong averaged about 10 percent every year.
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