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A business owner is trying to decide whether to buy, rent, or lease office space in an environment where the states of nature describe business conditions as either brisk or slow. The payoffs to the buy decision, with brisk listed first are 90 and -10. Similarly for rent we have 70 and 40. Finally for lease the numbers are 60 and 55. If the probability of brisk business is .40 and for slow business is .60, and if the highest and lowest payoffs have utility 10 and 0, respectively, and if payoffs 70, 60, 55 and 40 have indifference probabilities .5, .4, .3, and .1, respectively, then which decision leads to the highest expected utility?
Rich family before tax 500,000. tax rate 30%. middle class before tax 50000. 20% tax rate. poor family 20000. 2% tax rate. what is the ratio of rich's family's income to the poor family's income before tax and after tax? is this tax progressive?
Joe won $365,000 a year for life in the state lottery. Use the labor-leisure choice analysis to answer the following. show how Joe's lottery winnings affect the position of his budget line. Joe's utility function for goods per day (Y) and hours of le..
Graph a short run situation where a large-market team has lower profits at its profit maximizing level of attendance than a small-market team has at its profit maximizing level of attendance. In your graph, be sure to identify the profit-maximizing a..
1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a
Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.
Discuss how the role of newspapers as an advertising medium would differ for national versus local advertisers. Do you feel that the rate differential newspapers charge national versus local advertisers is justified?
Evaluate the economic growth and development economists. Determine which economist you feel made the most significant contribution to economic theory.
The federal debt keeps rising every year and has changed from a moral responsibility to a tool used in economic policy. Government spending is used for everything from Medicare and Medicaid to buying books for underprivileged schools.
explain how lower coffee bean output in brazil, vietnam, columbia and central america are affecting this market. explain what has been happenning in this market.
q.anthony figueroa is a cpa who works for an accounting consulting firm. his annual salary income is 70000. anthony is
For a firm with two variable inputs, X = (KL)1/4; where X is the level of output; while K and L are the inputs of capital and labour, respectively. The rental rate per unit of capital is $4, and the wage rate per unit of labour is $64. Derive the lon..
illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.
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