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Biff owns and operates a golf driving range on land that he also owns. Last year his accountant calculated that his driving range makes $50,000 profits per year. Last year a property management company offered to lease Biff’s land from him for $80,000 per year forever. Calculate the economic profits of Biff’s driving range last year. If the property management company offers the same land lease deal to Biff this year, should he take the deal? Explain why or why not, and use your calculation of Biff’s economic profits in your explanation.
If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
Elucidate why the general level of wages is higher in the United States and other industrially advanced countries.
Explain by how much did real GDP increase between 2002 and 2003. Velocity in the country of Shem is always stable.
A solar panel has an installed cost of $2900, and it reduces the homeowners energy bill by $29 per month. The residual value of the solar panel is negligible at the end of it's 10-year life. what is the annual effective IRR of this investment
Which of the following is not an example of a barrier to entry? If a single firm monopolizes the market for rice then. Which of the following is a characteristic of monopolistic competition? Which of the following product markets is best described by..
Can there be a deficit on Current Account and a deficit on Capital Account at the same time? Explain. Explain why currency depreciation leads to an improvement in a nation's balance of trade. How is the exchange rate determined in a freely floating r..
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
Which of the following is a method for the Federal Reserve to control the supply of money? Open-market operations refer to the Federal Reserve: What determines the weights for calculating the Consumer Price Index?
find a transformation of the data to be able to use the same data to estimate a model that satisfies the Gauss-Markov assumptions. be clear and explicit about the process. clearly explain why the transformed model meets the Gauss-markov assumptio..
The Harvard Business Review presents a story about Peachtree Healthcare called "Too Far Ahead of the IT Curve?" and some challenges it faces in IT integration. After the case study's formal presentation, four commentators weigh in on what solution..
The following figure shows the intersection of demand and supply at the price P2 and quantity Q2 in a competitive market. What is the producer surplus at the equilibrium level of output?
A cinema hall has a capacity of 150 seats. The owner can oer students a discount on the price when they show their student
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