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1. Casey is an expert poker player and can make $35 an hour playing poker online. On Saturday Casey goes to a local tournament with a $15 entry fee. He plays for four hours and wins first place, taking home the $150 prize. Did Casey make an economic profit at the tournament?
2. Indicate whether the following statements are true or false, and then briefly explain your reasoning.
a. It is possible for accounting and economic costs to be equal, but it is never possible for economic costs to be less than accounting costs.
b. It is possible for a firm to show an economic profit without showing an accounting profit.
Suppose the yield on a 30-year corporate bond rated Aaa is 9.50 percent and the yield on a 30-year Treasury bond is 9.00 percent.What is the default risk premium Would you expect a higher or lower default risk premium on an A-rated bond
Because of the large U.S. trade imbalance with major Asian nations, cargo ships arrive at West Coast seaports fully loaded but return to Asia half to completely empty. Use the concept of opportunity cost to help explain the differential shipping r..
What is the difference between the four?
what extra semiannual expenditure for five years would be justified for the maintenance of a machine in order to avoid an overhaul costing $3000 at the end of five years. assume nominal interest rate of 8% componded semiannually.
what would be the vehicle operating cost of your company for each semi-truck in cent per mile?
Evaluate the meaning of the selected literary work, using the analytical approach you described
Are classes supplied through "a market" similar to what has been described in this chapter?
The plate welded to the end of the I-beam is fastened to the support with four 10-mm-diameter bolts (two on each side). Assuming that the load is equally divided among the bolts, determine the normal and shear stresses in a bolt.
Qx= 1100-30Px-40Py+30Pz+.025M, where M is income and Py and Pz are the prices of related goods. Py=$15, Pz=$50, and M=$40,000. Now assume Px=$60, and income is still $40,000. What is the price elasticity of demand
The banking system currently has $50 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 10 percent. If the Fed raises the reserve requirement to 12.5 percent.
In a small city, approximately 15% of those eli- gible are called for jury duty in any one calendar year. People are selected for jury duty at random from those eligible, and the same individual cannot be called more than once in the same year.
Under the price ceiling, quantity supplied and quantity demanded differ. Which of the two will determine how much oil is purchased? Briefly explain why.
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