#### English vs. Vickrey Auction

Briefly describe the difference between the mechanism of an oral or English auction and a Vickrey or second price auction. Is there any difference between the winning bidders in the two auctions, and the winning payments made in the two auctions? Briefly explain.

#### Substitute and Complement Goods

2a. What should you do to maximize profits with respect to prices after you acquire a substitute product. Which prices should you change more? 2b. What should you do to maximize profits with respect to prices after you acquire a complement product?

#### A stockholder case is assessed.

You are attending the annual stockholder's meeting of PIC Company. A fellow stockholder points out that the manager of PIC earned \$100,000 last year, while the manager of a rival firm, CUP Enterprises, earned only \$50,000. A motion is made to lower the salary of PIC's manager. Given only this inform...

#### Walt Disney World Theme Park scenario is solved.

Walt Disney World Theme Parks offer visitors a wide variety of ticket options. The one thing these ticket options have in common is that they entail a fixed entrance fee and allow customers to take as many rides as they want at no additional charge. For instance, by purchasing a 1 â?" Day ticket fo...

#### Introductory Economics Questions

Please see attachment for the fully formatted solution. 1) An economics department at a large state university keeps tract of its majors' starting salaries. Does taking econometrics effect starting salary? Let Sal = starting salary in dollars, GPA = grade point average on a 4.0 scale, Metrics = ...

#### Econometrics Problem Estimates

Please see the attached document. Thank you. 1) We've collected a random same of 8,418 adults from the U.S. population in 2008 and calculated Body Mass Index (BMI). We found the Sample Mean [BMI(hat)] to be 27.7 with an estimated standard error of 0.21. a) Provide an estimate for the underlyi...

#### Percentages of Population with Diabetes and Obesity

** Please see the attachment for a complete problem description ** 1) We've collected data on the percentage of the population of each county in California that is considered obese, using clinical measures, and that has been diagnosed with diabetes. We have constructed two random variables, Obes...

#### Total/Average Costs

Fixed Costs: \$250,000 Average Variable Costs: \$10 + .01Q Projected annual volume: 4,000 units I. Estimate total cost and average total cost II. Estimate effect on learning curve on Average Total Costs if actual cost was \$522,500 and actual volume was 5000 units.

#### Profits

Philips Industries manufactures a certain product that can be sold directly to retail outlets or to the Superior Company for further processing and eventual sale as a completely different product. The demand function for each of these markets is Retail Outlets: P1 = 60 - 2Q1 Superior Comp...

#### Procompetitive or anticompetitive

An industry is composed of Firm 1, which controls 70 percent of the market, Firm 2 with 15 percent of the market, and Firm 3 with 5 percent of the market. About 20 frims of approximately equal size divide the remaining 10 percent of the market. Calculate the Herfindahl-Hirschman Index before and a...

#### The nature of industry

Recently, Pfizer and Warner-Lambert agreed to a \$90 billion merger, thus creating one of the world's largest pharmaceutical companies. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by grant...

#### Zero-Sum Game

9. The following is the pay-off matrix for zero sum game. What is the each player's dominated strategy of the following zero-sum game? Firm 2 Firm 1 C1 C2 C3 R1 6 -6 -4 R2 -1 3 0 R3 3 2 1 a. R1 for Firm 1 and no dominated strategy for Firm 2. b. R2 for Fir...

#### Stationarity of Time Series

Given the following AR(2) model for some returns y(t) = 0.803*y(t-1) + 0.682*y(t-2) + u(t) where u(t) is a white noise error process. By examining the characteristic equation, check the estimated model for stationarity.

#### Oligopolies Question

Which of the following does NOT describe oligopolies? The rivals react to business decisions made by other firms. The firms are price-takers. There are just a few firms. The products may be either homogeneous or heterogeneous.

#### Statistic - hotel check-ins

Given the following data on hotel check-ins for a 6-month period: Month Number of rooms July 70 August 105 September 90 October 120 November 110 December 115 a. What is the 3-month moving average for January? b. What is the 5-month moving average for January?

#### Econometrics -Recall from introductory economics that an increase of \$1 in government spending may increase GDP by more than \$1. The exact amount by which GDP goes up is the multiplier. Using a sample of 41 observations, we estimate the multiplier; its estimated value is 4.0 and its standard error is .4.a) Find a 90 percent confidence interval, a 95 percent confidence interval, and a percent confidence interval for the true value of the multiplier.b) Would you believe that the value of the multiplier was 4.2? Would you believe that it was 2.8?c) If government spending increases bt \$20 billion, how much do you predict that GDP will rise? Find an interval in which it is 90 percent likely that the resulting true rise is GDP will br found.

Recall from introductory economics that an increase of \$1 in government spending may increase GDP by more than \$1. The exact amount by which GDP goes up is the multiplier. Using a sample of 41 observations, we estimate the multiplier; its estimated value is 4.0 and its standard error is .4. a) Fi...

#### Graphical analysis in stata

Attached STATA file. I'm not sure about few things. Please provide me with some detailed information: 1. How to graph the relationship between different races and total pay?? 2. How to graph the relationship between different races and average school leaving age?? 3. How to graph the relati...

#### outcomes of this experiment

I'm not sure how to figure this one out - A quality control inspector selects a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested. List the possible outcomes of this experiment regarding two parts.

#### The probability of passing

I'm having trouble with this problem: A student is taking two courses, history and math. The probability the student will pass the history course is .60 and the math is .70. The probability of passing both is .50. What is the probability of passing at least one?

#### Maximize Profits: Two Graphs Relate to Each Other

You are the manager of a firm that specializes in selling exotic animals to zoos around the world. Your goal is to determine the number of baby zebras (Z) that must be born on your firm's farms each month in order to maximize profits. The total benefits (revenues) and costs to your firm of producing...