Subscribing to economist analyst today magazine

Assignment Help Microeconomics
Reference no: EM13836682

Suppose that you are considering subscribing to Economist Analyst Today magazine. The magazine is advertising a one-year subscription for $60 or a two-year subscription for $115. You plan to keep getting the magazine for at least two years. The advertisement says that a two-year subscription saves you $5 compared to buying two successive one-year subscriptions. If the interest rate is 10%, should you subscribe for the one year or for the two year subscription? (Assume that one year from now a one year subscription will still be $60.) 

Reference no: EM13836682

Questions Cloud

Explain incentive plans can influence performance measures : Incentive plans can influence performance measures by providing intrinsic and/or extrinsic motivation to complete tasks more efficiently and work toward goal congruence.
Explain how trade works by breaking it down : 1. Consider two individuals, Fred and Barney. In one hour, Fred can produce either 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce 2 gallons of beer or 4 gallons of wine. Assume both goods can be produced in continuous quant..
Estimate the companys new market beta : Estimate the company's new market beta. If the company's cost of debt rises to 100 basis points above the Brazilian risk-free rate, what will its new cost of capital equal?
Substitute goods for time in the production of commodities : An explanation for my labor economics course A household will tend to substitute goods for time in the production of commodities if: a. a household member's market wage increases b. a household member's market wage decreases c. the substitution effec..
Subscribing to economist analyst today magazine : Suppose that you are considering subscribing to Economist Analyst Today magazine. The magazine is advertising a one-year subscription for $60 or a two-year subscription for $115. You plan to keep getting the magazine for at least two years. The adver..
Second possibility is purchasing a meal at school cafeteria : 1. A student has a budget of $200 for their meals outside of the home per week. One possibility is purchasing a meal at a restaurant, which  we will call x1, and which costs $20, and a second possibility is purchasing a meal at the school cafeteria, ..
Explain how compensation could inspire individuals : Explain why the analyst earlier report was not followed by an SEC investigation. Do you think that Nacchio's compensation scheme played any role in the fraud?
Analyze the roles of the general manager executive team : Analyze the roles of the general manager's executive team and summarize their respective departments
Considered cyclical unemployment : A. A college instructor's contract is not renewed, because more people are taking online classes and the college does not need as many classroom instructors. B. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on b..

Reviews

Write a Review

Microeconomics Questions & Answers

  How economy is experiencing a sharp and prolonged trend

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate.

  What is the initial monthly payment

You borrowed $150,000 with a 30-years payback term and a variable APR that starts at 9% and can be changed every five years. What is the initial monthly payment?

  What was his monthly loan payment

Jerry bought a house for $400,000 and made an $80,000 down payment. the rest of the cost was paid with a 30 year loan. Payments were paid monthly. The nominal annual interest rate was 6% after 10 years he sold the house and paid the remainder of the ..

  Implementation of monetary policy and federal reserve

Determine what type of monetary policy has the Federal Reserve been using for the last year easy or expansionary, tight or contractionary, or neutral or non-involvement)?

  Calculate the expected welfare loss

Calculate the expected welfare loss, E(WL), from buying this policy. (HINT: the expected welfare loss is the sum of the areas of the two triangles times their probabilities.)

  Find the comparative statics for an increase

Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..

  Analyze each macroeconomic model

Analyze each macroeconomic model discussed in Chapter 13 to determine which model you believe is viable across the greatest number of economic situations. Explain your rationale.

  The required return on investment in this machine for david

david wants to buy a machine for his firm. he expects to incur the maintenance cost of 500 at the end of the 1st year

  The winter city ski resort caters to both out-of-town

1. The Winter City Ski Resort caters to both out-of-town skiers and local skiers. The demandfor ski tickets for each market segment is independent of the other market segment. Themarginal cost of servicing a skier of either type is $10. Suppose the d..

  Write new technology developments in areas of generic and

list the new technology developments in the areas of generic and networked computing and web-based systems. what are

  Budget lines and indifference curves

Using budget lines and indifference curves, prove to your colleague that he is wrong - decompose the change in price into two components: pure substitution effect, and income effect.

  Demonstrate the impact of ikeas entry

IKEA is a Swedish home furnishings retailer. An official Indian agency supports IKEA opening 25 stores in India. Demonstrate the impact of IKEA's entry into the Indian home furnishings market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd