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Many automotive dealerships, such as BMW, sell low mileage late model used cars (often cars that were initially leased for 1-3 years) with warranties on defects and repairs that offer more coverage for longer periods of time than the warranties on their brand new cars. Explain the rationale for this practice using the concept of asymmetric information. Include in your explanation a discussion of who benefits from these extended warranties. Is there any group of individuals or firms who are hurt?
suppose that the government is debating whether to spend 100 billion today to address climate change. it is estimated
A total of $400,000 will be deposited one year from now for the gas pipeline maintenance in the area. They estimate that the deposit amount will increase by $80,000 per year for 6 years thereafter, determine the equivalent: (a) Present worth and (b) ..
A small start-up company invested in a new plant with an initial cost of $10 million. Operating costs for the plant were $3 million per year for 7 years. There was a special one-time charge of $1 million in year 2 to correct unexpected equipment prob..
explaining the effect of demographics on public revenue sources.
What happens to an organization when it does not “adapt and learn”? Bureaucracy undermines “new thinking”, discourages disagreeing, misallocates power, it is an enemy of “resilience”, the government, will “stall” if it does not “adapt and learn”.
The last recession ended in the middle of 2009. Since the end of the recession, has fiscal policy been a success? Why or why not?
Describe when you have experienced diminishing marginal utility. Also discuss opportunity costs you have had to pay in order to attend school
At university he attended, he spent $2,000 on books, $1,000 on cough medicine and earned $12,000 as an economics instructor. Illustrate what were Jon's economic costs while attending college.
Illustrate what is happening to the U.S. exchange rate when the U.S. nominal exchange rate is unchanged, but prices rise faster abroad in the United States than abroad.
q.suppose sam.com sell 3500 books on account for 11 each cost these book is 16500 on october 10 2012. one hundred of
q1. the price of good is 1.20 per unit also annual demand is 800000 units. market research indicates that an increase
HomeGrown is a small restaurant that specializes in serving local fruits, vegetables and meats. The company has chosen to enter into a long-term relationship with Family Farms, a local farming operation. The two parties have decided to enter into a l..
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