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Find recent evidence in the Wall Street Journal and other business publications on how companies are expanding the use of the techniques described in the opening case to understand and impact consumer behavior.
Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year
What is Soroush’s income elasticity of demand for Good 1? C. What is Soroush’s income elasticity of demand for Good 2?
For the following question, assume Food is graphed on the vertical axis and Clothing is graphed on the horizontal axis. Suppose Ann's marginal rate of substitution between Food and Clothing is -3. Also, Bill's marginal rate of substitution between Fo..
A new electric generation plant is expected to cost $43,250,000 to complete. The revenues generated by the new plant are expected to be $3,875,000 per year, while operational expenses are estimated to be $2,000,000 per year. If the plant is expected ..
What is information asymmetry and example? What is moral hazard and example? What is adverse selection and example?
A firm produces two goods: widgets (X) and woozles (Y). Its profit function is given by: Π = 55X – 2X2 – XY – 3Y2 + 100Y and its maximum output capacity is X + Y = 17. Use the Lagrangian method to calculate the output mix the firm should produce. Est..
The so-called "recognition lag" associated with fiscal policy is a result of how slowly the U.S. Congress moves. The Social Security program is a retirement system where payments to retirees come from their previous contributions. The more progressiv..
Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 percentage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $170 bi..
A community ponders implementing a no-smoking ordinance that would eliminate smoking in all businesses, government offices, and public places. Smokers are upset and argue that their rights are being violated by this proposed ordinance. How does the r..
Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.
Discuss how the distribution of income among various groups of income earners have changed in this country during the past 50 years. In your opinion, do we need to initiate any policy to address the distribution of income?
Find the amount of capital and labor that will maximize profit. Show second order conditions for the maximum.
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