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Billie has a car for sale, of quality θ ∈ [0, 1]. Louis can make an offer p ∈ [0, 1] but only Billie knows the quality of the car. The distribution of θ is uniform, and this is common knowledge. The value of the car to Billie is θ, while the value of the car to Louis is 1.5θ (thus for any θ, there is the possibility of efficient trade). Show that Louis offering p = 0 and Billie accepting any p ≥ θ is a Bayes-Nash equilibrium. What does this imply about efficient trade?
)Now suppose that some of President's close political advisers are urging him to adjust taxes but not spending. Assuming the same initial level of G (=500), how would you advise the administration to adjust taxes to reach potential GDP?
The cost for loss of heat from the pipe per meter is $4.8/X1/2 per year. Here, X represents the thickness of insulation in meters, and X is a continuous design variable.
The "crowding-out effect" suggests that A. excessive population in the cities is pushing people into the suburbs.B. if consumption spending increases investment spending must decrease. C. tax increases are paid primarily out of saving and, therefore,..
you are given the following regression results estimating the demand for widgets based on time series data for the past
The paper will involve examining a situation through the lens of the three-legged stool that your authors are developing.
firms that compete with each other cournot game with identical cost function mc0 and the inverse demand py100 - y where
Global Investment Group operates in a perfectly competitive industry with the following Cost and Revenue data: What is the loss minimizing output level for the firm?
as an economist for abc plastics your boss has asked you to respond to some questions she has regarding the companys
Discuss the Henry George idea for a single tax on real estate and why did the California State Lottery extend the payoff period from 20 years to 26 years?
tammy monahan is considering the purchase of a home entertainment center. the product attributes and weights she
If a 3-percent increase in the price of corn flakes causes a 6-percent decline in the quantity demanded, what is the elasticity of demand?
What factors affect the fuel efficiency of cars · To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers · To what extent would increased government involvement with re..
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