Cost Economic Problem

Still dont know how to do this type of problem...... An industry consists of three firms with sales of $200,000, $500,000, $400,000. a. Calculate the Herfindal-Hirschmann index (HHI) b. Calculate the four-firm ratio. (C^4) c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger between the firms with sales of $200,000 and $400,000. Explain your findings.

Fixed Cost Problem

A firm fixed cost are 0 outputs and its aveage total cost producing different output levels are summarized in the table below..... Complete the table to find the fixed cost, variable cost, total cost, average fixed cost and average variable cost and marginal cost. Q FC VC TC AFC AVC MC 0 $10,000 - 100 $200 200 125 300 133 1/3 400 150 500 ... click for more

Dummy variable

An Economics department at a large university keeps track of its majors' starting salaries. We address the question of the value of taking econometrics, based on last year's crop of 50 majors. Let SAL=$ salary, GPA = grade point average on a 4.0 scale, METRICS=1 if student took econometrics, METRICS = 0 otherwise, SEX=1 if student is a female, otherwise =0. Consider the following regression SAL = B1 + B2GPA + B3METRICS + B4METRICS * GPA + et (a) Based on table 1, what is the marginal effect (benefit) of taking econometrics? (b) What is the predicted wage difference between a student who took econometrics and one who did not, given that their GPA =3.0? Consider another regre... click for more

Omitted bias + f-stat

The following regression model represents the demand for peanut butter: log qt = B1 + B2 logpt + B3log rt + B4logmt + ut where qt is the quantity of peanut butter consumed at time t; pt is the price of peanut butter; rt is the price of jelly; and mt is income per capita. Suppose an analyst estimates the following model: log qt = B1 + B2 logpt + B3logmt + et we expect B2 < 0 (law of demand) and B4 > 0 (peanut butter is a normal good). What is the sign of omitted variable bias of B2 if (a) B3 < 0 (peanut butter and jelly are complements) and pt and rt are positively correlated. (b) B3 > 0 (peanut butter and jelly are substitutes) and pt and rt are positively correlated. (c) B... click for more

Questions and Problems

1. Regression analysis is a statistical procedure for developing a mathematical equation that describes how: a. one independent and one or more dependent variables are related b. several independent and several dependent variables are related c. one dependent and one or more independent variables are related. d. None of the above answers is correct. 2. In a simple regression analysis (where Y is a dependent and X an independent variable), if the Y intercept is positive, then: a. there is a positive correlation between X and Y b. there is a negative correlation between X and Y c. ... click for more