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Q. (i) What is expected salary of a CEO who has been with company for years? Construct a 95% confidence interval on prediction for average CEO who has been with company for 10 years. What is margin of error of your prediction? What is high and low expected salary?
What can you say about the level of the real interest rate if people instead are risk averse.
Explain how much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
Assume you are a producer and seller of wine. Elucidate whether the following events would affect the demand or supply of wine and the price you will receive.
Illustrate which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
Illustrate what is the maximum amount he or she would pay for insurance against a 50 percent chance of losing 3,600.
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.
Write down a formula that describes the marginal product of labor in the short run as a function of the amount of labor used.
How an airline executive might use tourism economics relating to passengers load factors, ticket prices discounts, frequent flyers programs, joint fares, flight frequencies.
Illustrate what is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the cost from being regulated at the socially optimal level.
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
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