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1- What is a Black Swan event?
2- Does it ever make sense a priori to devote resources to preventing a black swan event? Explain.
3- Does it ever make sense a priori to devote resources to containing a black swan event should one occur? Explain.
4-Is human error different than a black swan event? Can human error lead to a black swan event?
5- If you were BP's executive and you were looking at the cost of a blowiut loss of 87% market value, possible bankruptcy, and so on, and you were determining whether to spend several million dollars providing redundancies- releif wells drilled at the same tim as the main well, how would you decide whether to spend the money?
Pear Inc. is a monopolist producing the iWatch, a wristwatch mobile communication device. The iWatch is a device that will last for exactly two periods, after everyone will switch to Boogle Glass, a eyeglass mobile communication device that is not ye..
A local newspaper headline blared: “Jim Smith signed for $10 Million.” A reading of the article revealed that on April 1, 1997, Jim Smith, a junior hockey scoring sensation, signed a $10 million package with the Toronto Maple Leafs.
a draw the supply and demand for apartments. assume in this market all apartments are identical so there is only one
What are the factors that allow a company to pursue an outpacing strategy?. Identify the ways that companies can follow in order to deal with a disruptive innovation. Explain the six paths framework and be able to use it for value creation in e-busin..
A firm has the production function f(x, y) = x^0.90y^0.80. This firm has
Evaluate and explain as accurately as you can the manner in which each of the following individual or party would be affected by fairly rapid inflation? a) A department store assistant manager. b) A pensioner who receives fixed monthly income.
consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit of
Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits?
Increasing the government budgetary surplus or decreasing the deficit is desirable in a period of:
Home has 3,600 units of labor available. It can produce two goods, shirts and pants. The unit labor requirement in shirt production is 4, while in pants production it is 6. There is another country, Foreign, with a labor force of 2,400. Foreign’s uni..
a) What is Terms of Trade? How is it computed? Explain with an example. b) What is Comparative Advantage? Explain with an example of a two-country and two-commodity model.
Suppose there are 100 workers in the economy in which all workers must choose to work a risky or a safe job. Worker 1’s reservation price for accepting the risky job is $1; worker 2’s reservation price is $2, and so on. Because of technological reaso..
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