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A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner the right to sell beer, wine, and spirits in her restaurant. The cost of obtaining the three-way license was about $90,000 since only 300 such licenses are issued by the state. While the license is transferrable, only $75,000 is refundable if the owner chooses not to use the license. After selling alcoholic beverages for about one year, the restaurateur came to the realization that she was losing dinner customers and that her profitable restaurant was turning into a noisy, unprofitable bar. Subsequently, she spent about $4,000 placing advertisements in various newspapers and restaurant magazines across the state offering to sell the license for $80,000. After a long wait, she finally received one offer to purchase her license for $76,000. Was the restaurateur’s decision to advertise the license a good decision? Would you recommend that she accept this $76,000 offer?
The expected salvage value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.
Suppose that you invested $10,000 dollars using the dollar-cost-averaging approach. Assume that on Feb-1-10, and on Feb-1-11, you purchased $5,000 worth of stock (each year). You then held the shares until they were sold on Feb-1-2014 (assume you rec..
Brenda and Lela are sisters. They both like to make ice cream and cake. Brenda makes one batch of ice cream in eight hours and bakes a cake in two hours. Lela makes one batch of ice cream in 10 hours and bakes a cake in 5 hours. Who has the absolute ..
A consumer's reservation price is the price at which a:
Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as..
What are some of the key things that can shift the supply and demand of money? Explain how these shifts might happen.
Suppose that a monopolist faces the demand curve: Q=a-bP, where a and b are constants. Show that his marginal revenue curve is given approximately by the equation: MR= a - 2Q/b
Graphically illustrate the concept of an over-valuation of the dollar vis-a-vis the euro. What is the real explanation of the fact? Feel free to use your own data to illustrate the point.
It is expected that the price of a bushel of wheat will increase in one month. This belief will result in
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%. Use one graph to show the..
What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..
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