A town has 500 real estate agents. The mean value of the properties sold in a year by these agents is 650,000​, and the standard deviation is 200,000. A random sample of 100

agents is​ selected, and the value of the properties they sold in a year is recorded.

a. What is the standard error of the sample​ mean?

b. What is the probability that the sample mean exceeds 656,000​?

c. What is the probability that the sample mean exceeds 631,000​?

d. What is the probability that the sample mean is between 634,000

and 660,000​?

A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days pre- ceding the election. Two types of ads will be used: radio and television. Each radio ad costs $200 and reaches an estimated 3,000 people. Each television ad costs $500 and reaches an estimated 7,000 peo- ple. In planning the advertising campaign, the cam- paign manager would like to reach as many people as possible, but she has stipulated that at least 10 ads of each type must be used. Also, the number of radio ads must be at least as great as the number of televi- sion ads. How many ads of each type should be used? How many people will this reach?

1. Suppose you are researching a firm that dominates the labor market in a small town.

a. What is the significance of studying this firm's resource pricing (for local people, for the firm itself, etc.)?

b. In the context of derived demand, why might it be important for workers at the firm that the firm's product has strong market performance?

c. Now assume the firm decides to increase employment by 1,000 workers. What does this decision reveal about the firm's marginal revenue product (MRP) and marginal resource cost (MRC)?

d. Next, assume the price for capital goods that the firm buys decreases. If capital goods and labor are substitute resources, what might this do to the firm's demand for workers?

e. If the firm's MRPL= $40, PL = $10, MRPC = $200; PC = $200, is it maximizing its profits? If not, state which resource(s) should be used in larger amounts and which resource(s) should be used in smaller amounts.

f. Finally, suppose there is mass migration into the small town where the firm operates. Due to the resulting increase in labor supply, what will happen to the firm's quantity of workers demanded? In this case, will the substitution effect and output effect move in the same direction or in opposite directions? Why?

Market demand for a retail product X in Our Town is given by Q^d = 42 – 0.4P (or P = 105 – 2.5Q_T). This market is shared by two firms, Mom & Pops and Walmart, whose cost structures are given by C_M&P = 15Q_M&P, and C_W = 100 + 5Q_W respectively. The two firms agree to share the market EQUALLY, and to collude on the price, which will be set by Walmart (as the dominant firm).

a. Determine Mom & Pop’s profit level under these conditions.

b. Walmart is considering pricing in a way that would force Mom & Pop’s to shut down its operations. Calculate Walmart’s profits as a monopolist as well as with Mom & Pop’s present (see assumption in (a) above), and advise Walmart whether or not it to do this. Set up your answers in a payoff matrix.

Sally lives in town with an ongoing pandemic. If she goes to work, theres a probability, p, of getting infected by the virus that is causing the epidemic, where 0 < p < 1. If she stays at home, she can't be infected and will not earn income. Suppose when she goes to work and does not get infected, she will earn $50. If she gets infected he will lose $80 in health care cost, but will still earn an income of $50. Sally has past savings of $100 and has utility function U = ln(x) where x is money. Determine the range of values for p where Sally will stay home.

King Solomon is a rich farmer in Tetebia, a town in the Asou Municipal Assembly. He owns over 100,000 hectares of farmlands. However, he fears the worst might happen and wants to do some investments to secure his future and that of his children. He is contemplating some long term investments he could undertake to secure his future and that if his children. He is now 50 years old and he plans to retire in 10 years from active farm work. He expects to live for another 25 years after he retires –that is, until age 85. He was advised by a friend that an investment in the financial market will help him plan his retirement well. He has no idea about financial markets and how they operate

SENTENCES IN BOLD ARE THE QUESTIONS

Consider a town in which only two residents, Felix and Janet, own wells that produce water safe for drinking. Felix and Janet can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.

1. Suppose Felix and Janet form a cartel and behave as a monopolist. The profit-maximizing price is $____??? per gallon, and the total output is ____??? gallons. As part of their cartel agreement, Felix and Janet agree to split production equally. Therefore, Felix's profit is $____???, and Janet's profit is $___???.

Suppose that Felix and Janet have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Felix says to himself, "Janet and I aren't the best of friends anyway. If I increase my production to 35 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."

2. After Felix implements his new plan, the price of water DECREASES OR INCREASES  to $____ ???per gallon. Given Janet and Felix's production levels, Felix's profit becomes $___??? and Janet's profit becomes $____???.

Because Felix has deviated from the cartel agreement and increased his output of water to 35 gallons more than the cartel amount, Janet decides that she will also increase her production to 35 gallons more than the cartel amount.

3. After Janet increases her production, Felix's profit becomes $_____???, Janet's profit becomes $____???, and total profit (the sum of the profits of Felix and Janet) is now $____???.

4. True or False: Based on the fact that both Felix and Janet increased production from the initial cartel quantity, you know that the output effect was larger than the price effect at that quantity.

Note that Felix and Janet started by behaving cooperatively. However, once Felix decided to cheat, Janet decided to cheat as well. In other words, Janet's output decisions are based on Felix's actions.

5. This behavior is an example of A TIT FOR TAT STRATEGY/ A DOMINANT STRATEGY/ TYPING/ OR A PRISONERS DILEMMA?? .

You are planning a report on apartment living in a college town. You decide to select four apartment complexes at random for in-depth interviews with residents. Use Table B, starting at line 128, to select a simple random sample of four of the following apartment complexes. (Don't use "00" to start with, and label in alphabetic succession for purposes of this exercise.)

101 19223 95034 05756 28713 96409 12531 42544 82853 102 73676 47150 99400 01927 27754 42648 82425 36290 103 45467 71709 77558 00095 32863 29485 82226 90056 104 52711 38889 93074 60227 40011 85848 48767 52573 105 95592 94007 69971 91481 60779 53791 17297 59335 106 68417 35013 15529 72765 85089 57067 50211 47487 107 82739 57890 20807 47511 81676 55300 94383 14893 108 60940 72024 17868 24943 61790 90656 87964 18883 109 36009 19365 15412 39638 85453 46816 83485 41979 110 38448 48789 18338 24697 39364 42006 76688 08708 111 81486 69487 60513 09297 00412 71238 27649 39950 112 59636 88804 04634 71197 19352 73089 84898 45785 113 62568 70206 40325 03699 71080 22553 11486 11776 114 45149 32992 75730 66280 03819 56202 02938 70915 115 61041 77684 94322 24709 73698 14526 31893 32592 116 14459 26056 31424 80371 65103 62253 50490 61181 117 38167 98532 62183 70632 23417 26185 41448 75532 118 73190 32533 04470 29669 84407 90785 65956 86382 119 95857 07118 87664 92099 58806 66979 98624 84826 120 35476 55972 39421 65850 04266 35435 43742 11937 121 71487 09984 29077 14863 61683 47052 62224 51025 122 13873 81598 95052 90908 73592 75186 87136 95761 123 54580 81507 27102 56027 55892 33063 41842 81868 124 71035 09001 43367 49497 72719 96758 27611 91596 125 96746 12149 37823 71868 18442 35119 62103 39244 126 96927 19931 36809 74192 77567 88741 48409 41903 127 43909 99477 25330 64359 40085 16925 85117 36071 128 15689 14227 06565 14374 13352 49367 81982 87209 129 36759 58984 68288 22913 18638 54303 00795 08727 130 69051 64817 87174 09517 84534 06489 87201 97245 131 05007 16632 81194 14873 04197 85576 45195 96565 132 68732 55259 84292 08796 43165 93739 31685 97150 133 45740 41807 65561 33302 07051 93623 18132 09547 134 27816 78416 18329 21337 35213 37741 04312 68508 135 66925 55658 39100 78458 11206 19876 87151 31260 136 08421 44753 77377 28744 75592 08563 79140 92454 137 53645 66812 61421 47836 12609 15373 98481 14592 138 66831 68908 40772 21558 47781 33586 79177 06928 139 55588 99404 70708 41098 43563 56934 48394 51719 140 12975 13258 13048 45144 72321 81940 00360 02428 141 96767 35964 23822 96012 94591 65194 50842 53372 142 72829 50232 97892 63408 77919 44575 24870 04178 143 88565 42628 17797 49376 61762 16953 88604 12724 144 62964 88145 83083 69453 46109 59505 69680 00900 145 19687 12633 57857 95806 09931 02150 43163 58636 146 37609 59057 66967 83401 60705 02384 90597 93600 147 54973 86278 88737 74351 47500 84552 19909 67181 148 00694 05977 19664 65441 20903 62371 22725 53340 149 71546 05233 53946 68743 72460 27601 45403 88692 150 07511 88915 41267 16853 84569 79367 32337 03316

1.Smitty and Bubba were out on the town and noticed a man harassing a lady for a kiss. When they approach him, he retreats. Not satisfied, Smitty pulls out a gun and shoots the stranger. Can Smitty use defense of others as a defense against this intentional tort?

a)No, deadly force cannot be used in a situation where imminent danger did not exist.

b)Yes, the man should not have tried to kiss the girl and Smitty's actions were justified.

c)No, one cannot defend legally another person using deadly force, only him or herself.

d)Yes, Smitty can use deadly force if he believed that that man's actions were reason enough to kill him.

2)In order for a crime to be committed there must be these two things must simultaneously co-exist,______ and _________

3)Stewart is the top manager at,the Milkybay, Inc. factory. He sets strict ethical standards for all employees. Stewart, however, often takes some of the company’s best milkybays and sells them from his house. The ethical tone at Milkybay, Inc. is

a)

The Candy Town Company, a competitor of the SweetTooth Candy Company, knows it will need 40,000 lbs of sugar six months from now to implement its production plans. James Taffy, Candy Town's purchasing manager, has essentially two options for acquiring the needed sugar. One option is to buy the sugar at the going market price when they need it, six months from now. Mr. Taffy has assessed the probability distribution for the possible prices of sugar six months from now (in dollars per pound) as shown below:

Price in 6-month   Probability

    $0.078            0.10
     0.086    0.20
     0.094    0.20
     0.102    0.20
     0.110    0.20
     0.118    0.10    

The second purchasing option is to buy a futures contract now. The contract guarantees delivery of the sugar in six months but the cost of purchasing it will be based on today's market price. Assume that possible sugar futures contracts available for purchase are for 10,000 lbs, 20,000 lbs or 40,000 lbs only. No futures contracts can be purchased or sold in the intervening months. The Candy Town Company will buy the total of 40,000 lbs of sugar in one way or another. The price of sugar now is $0.0851 per pound. The transaction costs for 10,000 lbs, 20,000 lbs and 40,000 lbs futures contracts are $150, $200, and $350, respectively.

(You may choose one answer more than once.)

Question 1 options: