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1. George is seen to place an even-money $100,000 bet on the Bulls to win the NBA Finals. If George has a logarithmic utility-of-wealth function and if his current wealth is $1,000,000, what must he believe is the minimum probability that the Bulls will win?
2. Show that if an individual’s utility-of-wealth function is convex then he or she will prefer fair gambles to income certainty and may even be willing to accept somewhat unfair gambles. Do you believe this sort of risk-taking behavior is common? What factors might tend to limit its occurrence?
1. Inclusive property rights provide an investor: 2. Lawyer Ayres and economist Levitt considered the net benefits of installing a LoJack from the society's standpoint positive, because the annual installation and service charges on this equipment..
Relatively little pollution is emitted initially in the production process, but as the factory is used more intensively, pollution per unit of output increases and Explain how the introduction of this policy will affect the production decision of f..
explain how rent seeking can lead to a drop in productin of goods and services. what role might the underground economy play in lessing the drop in productie activities
How many spaghetti dinners should the firm make each day and what if the firm has avoidable fixed costs of $1562.50?
Suppose a company is producing 1000 units of bottled power drink priced at $5. It is using a manufacturing process with a fixed cost of $1450 and a variable cost of $2.75 per unit (AVC).
How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry
Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In second paragraph
Question 2. Suppose a worker has 112 hours a week, non-labor income of $150 a week, and a wage rate of $10/hour. Assume the price of consumption goods increases from $1 (implicitly assumed price) to $2. What is the effect of this increase on a..
1. Evaluate Time Warner Inc's working capital position.
W(sub)a= 1/a1(Y1)+1/a2(Y2)+1/a3(Y3)+1/a4(Y4) where a(i) are the constants. a) What restriction on the ai is needed for Wa to be an unbiased estimator of mu? b) Find the variance of Wa.
how demand and supply determines prices in "contemporary art market" and the effects on speculation
Calculate what would be the minimum annual vehicle use in km/year that would justify the choice of a diesel engine car over the petrol version? Does this correspond to your answer to 4) above?
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