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Question: Consider the following two period example with the demand curve of P = 8 âˆ' 0.3q andMC = 2 consistent across time periods.
a) What is the optimal level of consumption in each period if q1 + q2 = 40 and the discount rate is 5%?
b) What is the optimal level of consumption in each period if q1 + q2 = 30 and the discount rate is 5%?
c) What is the optimal level of consumption in each period if q1 + q2 = 30 and the discount rate was 10%?
d) What does the comparison between the optimal allocation in b) and the optimal alloca- tion in c) say about the importance of the choice of discount rate?
Draw the cash flow diagram if Strong Metalworking repays a $100K loan with five annual payments. Each payment includes one-fifth of the principal
a study on the effects of PCB
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Museums and other non-profit organizations often have membershipfees. Members get benefits not available to non-members. Thisquestion examines the demand for memberships.Fred has $100 to spend on "other goods" or on plays at theKennedy Center. The pr..
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Starting with the estimated demand function for Chevrolets given in Problem 2, assume that the average value of the independent variables changes to N=225 million, I =$12,000, P= $10,000 P= 100 cents, A=$250,000 and P=O
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write 400-600 words that respond to the following questions with your thoughts ideas and comments. this will be the
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