Illustrated description of the optimum consumption decision
Please give a detailed, illustrated description of the optimum consumption decision.
Preferences & Choice
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Expected profit, mean-variance, maximin, & maximax rule
A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15%, and a 20% probability the price will be $20. The manager must decide whether to produce 6000 units of output (A), 8000 units (B) or 10000 units (C). The following table shows 9 possible outcomes de
Auction
Consider a third-price sealed bid auction: Suppose there are more than two bidders. Each potential bidder writes down a bid on a piece of paper. The buyer with the highest bid gets the item and has to pay the third highest bid. Is there a dominant strategy equilibrium for this auction? Make sure you exhaust all the possibilities