A friend says, "I really, really need a new car." As an economist, you're thinking Right! Everyone needs a new car. O This is an example of how objectively undefinable needs are. Many would argue that this friend could get along just fine with a reliable used car. O If this friend says she needs a new car, then we must all agree that a new car is a need and not just a want. O that a new car can only be considered a need if at least 51% of the public agrees.

A friend says, "I really, really need a new car." As an economist, you're thinking Right! Everyone needs a new car. O This is an example of how objectively undefinable needs are. Many would argue that this friend could get along just fine with a reliable used car. O If this friend says she needs a new car, then we must all agree that a new car is a need and not just a want. O that a new car can only be considered a need if at least 51% of the public agrees.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Arielle is a risk-averse traveler who is planning a trip to Canada. She is planning on carrying $400 in her backpack. Walking the streets of Canada, however, can be dangerous and there is some chance that she will have her backpack stolen. If she is only carrying cash and her backpack is stolen, she will have no money ($0). The probability that her backpack is stolen is 1/5. Finally assume that her preferences over money can be represented by the utility function U(x)=(x)^0.5 Suppose that she has the option to buy traveler's checks. If her backpack is stolen and she is carrying traveler's checks then she can have those checks replaced at no cost. National Express charges a fee of Sp per $1 traveler's check. In other words, the price of a $1 traveler's check is $(1+p). If the purchase of traveler's checks is a fair bet, then we know that the purchase of traveler checks will not change her expected income. Show that if the purchase is a fair bet, then the price (1+p) = $1.25.
N⁴q1
Two identically able agents are competing for a promotion. The promotion is awarded on the basis of output (whomever has the highest output, gets the promotion). Because there are only two workers competing for one prize, the losing prize=0 and the winning prize =P. The output for each agent is equal to his or her effort level times a productivity parameter (d). (i.e. Q2=dE1 , Q2=dE2). If the distribution of “relative luck” is uniform, the probability of winning the promotion for agent 1 will be a function of his effort (E1) and the effort level of Agent 2 (E2). The formula is given by...Prob(win)=0.5 + α(E1-E2), where α is a parameter that reflects uncertainty and errors in measurement. High measurement errors are associated with small values of α (think about this: if there are high measurement errors, then the level of an agent’s effort will have a smaller effect on his/her chances of winning). Using this information, please answer the following questions. Both workers have a…
The probability that it will rain on any given day is 0.20, and the probability is independent from day to day. You are trying to decide whether or not to make a tee time tomorrow to play golf. This requires a commitment on your part of turning down, say, movie tickets in favor of playing golf. If you accept the tickets, you also make the commitment not to go golfing. There is a weather forecast that signals whether it will rain tomorrow or not. There is a 0.80 probability that it rains when there is a "rainy" forecast and a 0.125 probability of rain when there is a "sunny" forecast. The overall probability of getting a "rainy" forecast is 0.111. Assume you are risk neutral. You place the following monetary values on the potential outcomes: a sunny day at $95 the golf course a rainy day at the movies a rainy day at home a sunny day at the movies $20 -$18 $1
Mete is Esra's boyfriend. Esra is expecting a marriage proposal from Mete. Today is Sunday. Mete says Esra that: (1) he is going to propose Esra on Monday or Tuesday or Wednesday or Thursday or Friday, at 10:00 pm. (2) he knows right now the day when he will propose (3) but the day of proposal will be a surprise to Esra: On the day of the proposal, she would not be expecting the proposal that day. Esra says Mete that what he says is impossible. Explain why Esra is right in a few sentences.
Q25
In the late 1990s, car leasing was very popular In the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the "residual value," computed as 60% Df the new car price. The manufacturer would then sell the retumed cars at auction. In 1999, manufacturers lost an average of $480 on each returned car (the auction price was, on average, $480 less than the residual value). Suppose two customers have leased cars from a manufacturer. Their lease agreements are up, and they are considering whether keep (and purchase at 60% of the new car price) their cars or return thelr cars. Two years ago, Becky leased a car valued new at $18,500. If she returns the car, the manufacturer could likely get $12,950 at auction for the car. Eleen also leased a car, valued new at $19,000, two years ago. If she returns the car, the…
Nn3 Suppose an incumbent monopoly firm currently earns a profit of $50,000 per period. A potential entrant could enter and make a profit of $15,000 per period while also lowering the incumbent’s profit to $20,000 per period. The monopoly firm could seek to engage in predatory pricing, which would lead to both firms earning a loss of $5,000 per period. (a) Is there a Nash Equilibrium in this game? If so, what is it? (b) Discuss how this game might play out in the real world?
Tonight at 7pm a professional basketball game featuring the Golden State Warriors and the Washington Wizards will be played at the Chase Center, an indoor arena in the Mission Bay neighborhood of San Francisco, California. Our teaching assistants Yang and Guangchu are making fair bets on the game. During office hours you learn that Yang thinks the Warriors will win and believes he is making a fair bet, assigning a probability of 5/6 or 83 % to the Warriors winning. Guangchu is betting on the Wizards and also believes he is making a fair bet, assigning a probability of 7/12 or 58% to the Wizards winning. You seek to bet a total of $N with Yang and Guangchu and capture a guaranteed, risk-free arbitrage profit. Now assume that N = $240. Let x be the number of dollars bet with Yang. What is the exact range of x that guarantees that your profit is greater than or equal to zero, no matter who wins the game? O 40 < ¤ < 140 O 40 < ¤ < 24O O0 < x< 140 O0
Bella Robinson and Steve Carson are running for a seat in the U.S. Senate. If both candidates campaign only in the major cities of the state, then Robinson is expected to get 80% of the votes; if both candidates campaign in only rural areas, then Robinson is expected get 75% of the votes; if Robinson campaigns exclusively in the city and Carson campaigns exclusively in the rural areas, then Robinson is expected to get 30% of the votes; finally, if Robinson campaigns exclusively in the rural areas and Carson campaigns exclusively in the city, then Robinson is expected to get 65% of the votes. (a) Construct the payoff matrix for the game. (Enter each percentage as a decimal.) Carson City Rural Robinson CityRural Is the game strictly determined? YesNo (b) Find the optimal strategy for both Robinson (row) and Carson (column). P = Q =
please send handwritten solution for Q3
You work at a mechanic shop. 40% of cars that come in have a flat tire. If there are 50 cars in the shop, what is the probability that more than 30 have a flat tire? Round to three decimal points.