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Bob goes to a party, wearing a hat that fits him well. At the end of the party, Bob picks up a hat, without looking at it. He knows that the hat he has picked is his own with probability p. As a first check to see if he has picked up his own hat, he tries the hat, and if it fits, he decides that it is his own hat.
However, even if the hat picked by Bob is not his own, it is still possible that it fits with probability q. Given that Bob picked a hat that fits him, what is the probability that he is correct in deciding that the hat is indeed his own?
Firms A and B are duopolist producers of widgets. The marginal cost of producing a widget is $10. The market demand for widgets is QD=35-(.5)P, where Q measures thousands of widgets per year. What are the firms Nash equalibrium outputs? What is the r..
Utopia is described by the following equations: C=80+0.75Y I=115-10r T=20+0.2Y M=20+0.05Y G=200 X=100 Money supply=450 L=110+0.55Y-10r F= -60+2r B= F+X-M Calculate: (a) Equilibrium output level and the equilibrium interest rate plus the position on t..
What factors played a role in contributing to the debt crisis and assess whether they are (a) minor factors (b) medium factors or (c) major factors.
Explain how the NBC Learn clip concerning optimism and certainty affect aggregate demand and hence, consumer spending. Make sure you say how the aggregate demand curve would shift for both optimism and pessimism in the economy.
When your income goes up to $50,000 from $40,000, demand for Scotch Whiskey increases from 500 to 600. Calculate income elasticity of demand.
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 20,000 -4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF.
There are mutual funds that invest in stocks of socially responsible or ethical or green companies. Do a web search to identify at least three such funds and look up their performance. How have these funds performed over the past five years compared ..
Explain the relationship between interest rates and unemployment. How do changes in the interest rate affect the level of unemployment in the economy?
The European Community's Directive on Data Protection strictly limits how database information is used and who has access to it.
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
Calculate the return on equity (ROE) for a sample of 20 banks for the year before the Sarbanes-Oxley Act was enacted. For the same sample of banks, calculate the ROE for the year following the enactment of the Sarbanes-Oxley Act.
q1. explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing
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