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Consider a project with a single cash flow of $1000 which will occur 10 years from now. There is no initial cost. The cost of capital is 15%. In this case, is it worse to commit a 10% error in estimating the cash flow, or to commit a 10% error in estimating the cost of capital?
Little confused on finding Consumer Surplus, Producer Surplus and Tax Revenue when tax is involved. I’m use to seeing the supply and demand lines extending to the y axis so i can find out the CS and PS easily by taking the area of the triangles betwe..
q1. illustrate what are the basic steps in solving for walras equilibrium with two consumers and two commodities given
Suppose that an impending environmental regulation to control the hazard of premaure death from 5/100,000 to 1/100,000 per year in exposed population of five million people. What is the maximum this regulaion could cost and still have benefits be at ..
what happened to real output? by how much would the price index have had to rise for real income to remain constant?
The economy of country Rumblen was hit by a banking crisis which led to a recession. Jason Wallace, a real estate agent, says that the economy will recover soon because the government is taking various measures to counter the recession. Some banks in..
The scholarship amount will grow at the rate of inflation expected to remain at 3% per year and the scholarship will be issued yearly forever
You have just been hired as manager of a new golf club. The golf club has market power over its members. The club owner wants you to come up with a two-part pricing strategy to maximize profits for the club. The average golfer’s monthly demand is P =..
A survey of 1272 pre-owned vehicle shoppers found that 8% bought the extended warranties. What is the population and what is the sample?
Suppose Atlas Publishing, a perfectly competitive firm, currently produces 2,000 maps per day at a total cost of $1,600. At its current level of output, Atlas is producing where the marginal revenue curve intersects a rising marginal-cost curve. Whic..
Determine the profit maximizing level of sales and advertising expenditure.
q1. for each of the determinants of demand in equation 2.1 classify an example exemplify the effect on the demand for
You have come to realize which you are only buying 3 bottles of wine a week now whereas you utilized to buy six bottles of wine when you made $60,000 a yr. Given this situation you would describe wine as a.
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