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1. Risk-averse persons sometimes prefer to play some gambles even if they know that those gambles are not fair, i.e., on average people lose by playing them. One plausible explanation for this seemingly paradoxical phenomenon is that:
The economic theory of uncertainty is not correct.
Gambling has entertaining effects which are not treated explicitly as part of the payoffs.
People's actions are not reasonable.
None of the statements is correct.
2. Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
MC = MR
P = MC
Positive long run profits
P = MC and positive long run profits
Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10 billion, then would national saving increase or decrease, and by how much?
Just breaks even over the year as whole. a Wouldn't the restaurant do better by staying closed out of season. At what cost will it shut down, given that all its fixed costs are sunk.
With showing your work in details, determine the requested information for acontrol chart for count of non-conformities.Trial center line. Trial upper control limit.
A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Use calculus to find the value of Q at which average cost is minimized. Does this cost function satisfy the three assumptions made in class concerning..
q.covington corporation purchased a vibratory finishing machine for 20000 in year 0. the useful life of the machine is
A $1,000 face value bond, with an annual coupon of $32, one year to maturity and a purchase price of $975 has:
Inducing the worker to exert effort A worker can exert two effort levels, good or bad which induce a production error with probability 1/4 and 3/4 respectively. Calculate the optimal contract and the effort that the principal desires under conditions..
You have a gross income of $355636 in 2014. Your filing status is single. You do not itemize deductions and you are allowed 1 exemption. What is your federal tax bill, assuming phase out of personal exemptions based on income?
How would each of the following affect the U.S. market supply curve for corn? Show your answers graphically and briefly explain.
Briefly explain in your own words a business cycle, economic indicators and government expenditures. Be specific, and explain
Working as part of an EPA team, your assignment is to give a clear, objective presentation of a market-based approach to reduce nonpoint source pollution. Include in your discussion the theoretical issues and any practical issues that must be address..
From your personal experience, discuss a situation you have faced that would require one of the six elements of moral judgment. Identify the element of moral judgment you chose and justify your response.
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