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A seller offers a good with value v ∈ {0, . . . , 10}, i.e., v is one of these 11possible values. The seller knows the exact value of v, but a potentialbuyer only knows that each value of v is equally likely (it is uniformly2 distributed). The buyer makes an offer b and the seller accepts the offerif and only if b ≥ v.
(a) What is the expected value of v?
(b) What is the expected value of v, given that the seller accepts theoffer?
(c) What is the buyer's equilibrium value of b?(d) Explain this result.
a nation to have commercial relations with other countries
The marketplace structure of Starbucks is a monopolistic competition. In the coffee industry, many producers and consumers exist, the goods and services are mixed.
Consider a country where the velocity of money is constant. Real GDP grows by 3% per year, the money stock grows by 4% per year, and the nominal interest rate is 3%.Using the approximate Fisher Equation what is the real interest rate in the economy..
Compute the long-run impact of a permanent rise in money supply versus a permanent tax cut.
Choose an organization that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How has the Internet changed this balance for organizations?
What do you think branded products usually are of higher quality than generic products and therefore justify their higher prices.
SF represents the supply curve of the fringe, D is the market demand curve, DRES represents the residual demand curve of the dominant firm, MRRES represents the residual marginal revenue curve of the dominant firm.
Does LRMC =MR for Competition? Does LRMC =MR for Monop. Competition? Does LRMC =MR for Oligopoly? Does LRMC =MR for Monopoly? Does P=AC for Competition?
Rise in customers income will make increase in the quantity demanded.
you are an economic consultant to a city that just imposed a payroll tax of 1 per hour of work. this payroll tax is
In April 2011, the money supply, as measured by M1, was approximately $1,917 billion. The monetary base was approximately $2,494 billion.
Analyze the economy of at least two countries (not the U.S.) - How do the economies of the countries you selected compare to the U.S.?
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