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Consider the example of Figure 11.3. Suppose we define as fair a cutback in which the two sources have the same total costs. Would an equiproportionate reduction be fair in this sense? A reduction meeting the equimarginal principle? Is this a reasonable definition of fair?
Summarize the general idea of Bayesian model averaging. When would this method be preferred to choosing one of the alternative models?
A successful engineer wants to fund an endowment for a university which will pay $10,000, $15,000, $20,000, and $25,000 for the 1st, 2nd, 3rd, and 4th quarters respectively, each year, forever. For an interest rate of 8% compounded quarterly
The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fisc..
Assume Nail Mania advertises in the local newspaper. Each day it advertises costs $100. Over the past several months, Nail Mania has conducted market research and developed the following information Number of days advertised per week Number of cust..
A particular segment of the medical device industry is dominated by a handful of firms. These firms have combined into an effective cartel. All firms in the cartel have the same cost structure with zero fixed costs and each has constant marginal c..
Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services, including flu shots. Assume first that the flu is not contagious. Defi..
For each of the following utility functions, find the marginal utilities (MUx and MUy) and the marginal rate of substitutional between x and y (MRSxy) and explain whether MRSxy is diminishing or not.
Compare and Contrast Frankenstein and Abraham Lincoln Vampire Hunter. How do each of them treat the themes of life and death?
(a) indicate the best strategy for each firm. The strategies for firm A are low price and high price and the strategies for firm B are enter and don't enter. What is the best (optimal) strategy for each firm
The market demand and supply functions for milk are: QD = 58 - 30.4P and QS = 16 + 3.2P. If a price floor of $1.75 is implemented, calculate the change in producer surplus. How many surplus units of milk are being produced.
suppose that you randomly draw a large number of values from the standard normal distribution. what percentage of the time would you expect to draw a value greater than or equal to two?
Show that there exists a unique solution to this problem, but there exists no Lagrange multiplier. Show that this is because the Slater condition is not satisfied.
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