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Tennessee just instituted a state lottery. The initial jackpot is $100,000. If the first week yields no winners, the next week's jackpot goes up, depending on the numbers of previous players who placed the lottery bets. The probability of winning is one in a million (1-10 -6). What must the jackpot be before the expected payoff is worth your $1 Bet? Assume that the state takes 60% of the jackpot in taxes, that no one else is a winner, and you are risk-neutral (i.e. you value the lottery at its expected value).
A domestic shoe company distributes running shoes and tennis shoes for $95 per pair. the marginal cost of producing a pair of running shoes is $60, and the marginal cost of producing a pair of tennis shoes is $45. A Chinese retailer offers to purc..
Some special handling devices can be bought for $12,000. At the end of 4 years they can be sold for $3,500. Determine the book value of the assets after 3 years of depreciation using SYOD.
Stan Moneymaker needs 15 gallons of gasoline to top off his automobiles's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline..
Finally, suppose for part c only that you now have the additional information that the marginal cost to Magee's of making one transparent pie is $2 (and is constant). Magee's currently charges $5 for each transparent pie.
The Manchester Athlete's Club (MAC) is a private, not-for-profit athletic club located in St. Petersburg, Florida. MAC currently has 3,500 members but is planning on a membership drive to increase this number significantly. An important issue faci..
The market for carrots is comprised of two segments: fresh market carrots, which have excellent, uniform color and a small core, and processing carrots, which are larger than fresh market carrots but still have good flavor
most customers tip according to a percentage rule between 15 and 25 percent of the bill.diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
a nation's rate in 2003 was 5%. It accumulated capital at a rate of 5% and added to its employment of labor at a rate of 5%. The proportionate increase in real GDP in response to a proportionate increase in capital was 0.2, and the proportionate r..
hurricane delayed the cash inflows that the managers of firm metro expected from a project that being built and
Suppose it is known that 45% of the population are Coalition voters, 45% are ALP voters, and 10% vote for Greens.
Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers.
An internal study by the Technology Services department at Lahey Electronics revealed company employees receive an average of four e-mails per hour. Assume the arrival of these e-mails is approximated by the Poisson distribution.
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