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Bill sees a classified ad offering a used DVD player for $5. On the opposite page, he sees a big color ad from a national electronics chain offering new DVD players for $50. Bill values a DVD player at $75 so long as it works, regardless of whether it is new or used. 5.2. Suppose that the seller of the DVD player, Al, was honest. He had a DVD player, and then his parents gave him a new one for his birthday, so rather than throw the old one away, he tried to find it a new home and make a few dollars. What should Al have done to sell it successfully?
Assume the utility function is not the square root of income but instead, utility is linear in income.
On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above. Find the earnings level at which the earnings subsidy ends. Discuss the effect of the program participation on wor..
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
Is the subsiquent events cause the dollar to appreciate or depreciate against the Euro.
If I have to lay-off 19 employees as the company is upside down -$1878.00 after total cost. So, by cutting staff of 19 with a salary of $100 per day, an eight hr day, how much will I save.
For several years, Palm was the dominant manufacturer of PDAs (personal digital assistants). However, a number of other manufacturers have since entered the PDA market.
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
You are planning to build a new home with approximately 2000-2500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet.
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U shaped long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by MC(q)=q+2 and market demand is given by Q..
The costs of a purely competitive firm and a monopoly could be different because the competitive firm is unregulated. the monopoly controls the input prices. the monopoly might experience economies of scale not available to the competitive firm.
Economists have estimated the subsiquent transportation elasticities.
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game
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