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Question: Suppose two business partners get together and they consider a project. The partner B has an established reputation for being reliable, but the partner A does not. B initially believes that A is reliable with probability 1/2. A knows his own type. If the project goes through and A is reliable, both parties earn 2. If the project goes through and A is unreliable, then A gains 1 and B loses 1 from it (think of A simply stealing the money). If the project does not go through, neither party earns anything from the project. The process of negotiation goes as follows. First, A has an opportunity to signal by taking an action (having a downtown office location, taking the business partner for an expensive dinner/trip, etc.) that costs it x from the interval [0, 2]. Second, B decides whether the project goes through or not. Give an example of an equilibrium (how much x is chosen by the reliable A and how much x is chosen by the unreliable A) in which B is able to distinguish the type of A from the amount of x.
Use demand and supply models to illustrate and explain the following: [Use the demand and supply model for a domestic market]: Discuss any demand-side and/or supply-side factors that can explain the recent change in the price of grapes
suppose you have 10 indivduals with vales 1 2 3 4 5 6 7 8 9 10. . our marginal cost of production is 2.50. what is the
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part of a workers pay on an automobile assembly line is based on the number of cars in a pay period that come off the
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Mention two common features of the currency crises of the 80's and the 90's.
Is economics a science? Why or why not? Use detailed examples and counter-examples demonstrating your grasp of this concept.
Discussion on short-run aggregate supply curve. A negative economic growth will decrease the level of GDP and result in a shirt to the left on the curve.
What firm did you pick? Why is it interesting to you? What are some opportunity costs of starting your own franchise?
What are some examples of effective control practices and how do they help address budgetary challenges?
what effects might a decision by these countries to diversify their interrational reserve holdings have on the dollar and what problems might it create for U.S monetary policy?
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