Two used car dealerships compete side by side on a main road. The first, Harry’s Cars, always sells high-quality cars that it carefully inspects and, if necessary, services. On average, it costs Harry’s $8000 to buy and service each car that it sells. The second dealership, Lew’s Motors, always sells lower-quality cars. On average, it costs Lew’s only $5000 for each car that it sells. If consumers knew the quality of the used cars they were buying, they would pay $10,000 on average for Harry’s cars and only $7000 on average for Lew’s cars.

Without more information, consumers do not know the quality of each dealership’s cars. In this case, they would figure that they have a 50-50 chance of ending up with a high-quality car and are thus willing to pay $8500 for a car. Harry has an idea: He will offer a bumper-to-bumper warranty for all cars that he sells. He knows that a warranty lasting Y years will cost $500Y on average, and he also knows that if Lew tries to offer the same warranty, it will cost Lew $1000Y on average.

a. Suppose Harry offers a one-year warranty on all of the cars he sells. i. What is Lew’s profit if he does not offer a one-year warranty? If he does offer a one-year warranty? ii. What is Harry’s profit if Lew does not offer a one-year warranty? If he does offer a one-year warranty? iii. Will Lew’s match Harry’s one-year warranty? iv. Is it a good idea for Harry to offer a one-year warranty?

b. What if Harry offers a two-year warranty? Will this offer generate a credible signal of quality? What about a three-year warranty?

c. If you were advising Harry, how long a warranty would you urge him to offer? Explain why.

As 90% of the US population is under some form of shut- or lock-down, the economic consequences have been devastating: 10 million unemployment claims in two weeks, expectation of a Q2 GDP decrease of over 25%, etc. The same is true in other countries with very few exceptions. While big business will probably recover, the impact on small businesses is both uncertain and possibly permanent – a study in the UK estimates that a six month shutdown would result in one third of small businesses closing permanently...

Using a real life example of a business you know well, how is it affected by the crisis and how it plans to survive in the future. You should try to incorporate any pertinent financial topics (such as: fundraising, the Fed, monetary and/or fiscal policy, bank lending, etc.) and include graphs, tables, charts to aid in your explanation.

true or false (with explanation)

a. according to the Fisher effect, when the inflation rate rises, the nominal interest rate rises by the same amount so that the real interest rate remains the same.

b. Inflation make them poorer because it raises the cost of what they buy.

c. the principle of monetary neutrality asserts that changes in the quantity of money influence nominal variables but not real variables in short run.

d. If an economy always has inflation of 10 percent per Year there is an inflation cost that will not suffer.

e. Hyperinflations occur when the goverment runs a large budget deficit, which the central bank finances with a substantial monetary contraction.

what is the definition of elasticity of demand?

formula?

each of the following cases, indicate which could you think has a relatively more price elastic demand and identify the reason (more substitutes bigger share of the budget or more times to adjust)

:motorcycles or Harley Davidsons

:peanut butter or housing

:your electric bill this month or over the entire year

If TAXI fares rise what will happen to the total revenue received by taxi operators assuming that the elasticity of demand for TAXI fares is elastic?

The demand curve for turnip can be represented by the following equation: ? = 2000 − 400? There are only two producers and the marginal cost to produce a turnip is $2 (There is no fixed cost). If the capacity of each firm is 600 output, calculate the price range of turnip under the Bertrand-Edgeworth Model.

GAME THEORY

E-commerce platform is used for facilitating the transaction between buyers and retailers. There are many platforms available in the market, such as Amazon.

i. Draw the payoff matrix of the selection of e-flatform between buyers and retailers.

ii. Explain whether there is a dominant strategy for buyers and retailers.

Write 450 words analysis about Mike Traxinger and his role and career at Agtegra. Also, Briefly Explain what Agtegra do.

What was one of the major reasons why the United States was slower to recover from the 2008–2009 recession than Canada?

3. When a central bank sets a target for the interest rate, what does it commit itself to?

4. According to supply-side theories, what happens if the government cuts the tax rate?

5. Which statement is consistent with the Keynesian theory?

6. Which statement do opponents of active stabilization policy believe?

7. During recessions, how do automatic stabilizers change government deficit and taxes?

8. If the short-run Phillips curve were stable, what would be unusual?

9. According to Friedman and Phelps, no matter what a central bank does to the money supply, what will happen in the long run?

A firmm purchases a life insurance contract from a sick person, then collects the payout when he dies. These types of contracts are called viatical settlements. It is the sale of a policy owner's existing life insurance policy to a third party owner for more than its cash surrender value but less than the net death benefit (Wikipedia). These markets are also referred to as reverse insurance markets. Firms have an incentive to enter into such settlements if they expect the person whose life insurance policy is being purchased to die relatively soon. If the person dies, the firm gets to collect the death benefit.

Q. Did this market suffer adverse selection?

Pinkor is a retail chain selling children´s clothes on the market stalls and small shop that it owns. It buys most of its products from wholesalers. Mr. Rakesh, the owner, says: “I think we should start to sell by mail order on the internet and close some of our shops to save money”.

a. Define “distribution channel”

b. Identify two disadvantages to Pinkor of buying supplies from wholesalers

c. Outline two benefits to Rakesh of selling through several small shops rather than by mail order and online

d. Explain two factors which affect Pinkor´s choice of distribution channel

e. Do you think Rakesh is right to want to change the channel of distribution the business uses? Justify your answer.

A firm purchases a life insurance contract from a sick person, then collects the payout when he dies. These types of contracts are called viatical settlements. It is the sale of a policy owner's existing life insurance policy to a third party owner for more than its cash surrender value but less than the net death benefit (Wikipedia). These markets are also referred to as reverse insurance markets. Firms have an incentive to enter into such settlements if they expect the person whose life insurance policy is being purchased to die relatively soon. If the person dies, the firm gets to collect the death benefit. Answer the following question below that pertain to viatical settlement markets:

Q. Would this type of a market suffer adverse selection problems? Explain your answer clearly. [Hint: Students are advised to look into BHT text or do some Google research on this to be able to answer this question properly. There is the theoretical explanation and then there is what actually happened in the market]

Research and upload five Australian articles relating to phoenix activities that will assist you in answering below. Your articles can be from cases, case notes, journal articles, opinions and publications from legal firms, Government bodies such as the ASIC, APRA, and other specific government bodies such as the ATO. . Discuss whether illegal phoenix activities have occurred in the above scenario. What are the warning signs of illegal phoenixing and whether these warning signs existed in the above scenario?

WITH STEP AND HOW YOU SOLVE IT PLEASE !

Max enjoys windsurfing and snorkeling. Max can either rent windsurfing or snorkeling equipment for a fixed price per hour. The table below shows the total utility Max gets from each activity. Max has a budget of 40$ and windsurfing costs 10$ per hour and snorkeling costs 5$ per hour.

1. Calculate Max marginal utility from windsurfing at each number of hours per day and calculate Max’s marginal utility from snorkeling at each number of hours per day.
2. Calculate Max’s marginal utility per dollar from windsurfing at each number of hours per day and calculate Max’s marginal utility per dollar from snorkeling at each number of hours per day.

1. In the table below, fill in the combinations of snorkeling and windsurfing that exhausts Max’s budget and fill in the marginal utilities per dollar.
2. How many hours does Max windsurf and how many hours does he snorkel to maximize his utility?

1. One way to prevent "food insecurity" and promote nutritional health is to develop and operate a community garden that grows fresh fruits and vegetables. In addition to the traditional outdoor community garden, there is the possibility of employing an indoor gardening method that uses hydroponics (a water-based "soil") to grow certain fruits and vegetables throughout the year. In either case, resources are required to grow food.

Please list the principal non-human resources required to produce food indoors using hydroponics versus the traditional outdoor gardening method. Please list at least 3 capital and/or natural resources used in each method.

After Hurricane Katrina, a number of cases where a question of whether property damage was wind related or water related were brought to the public’s attention.. Homeowners tend to insure against those negative situations that they deem to be most probable. In a case such as a hurricane, should an insurance company be willing to cover all types of damage even if the homeowner is insured only for water damage. Why?