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A. if the rate discount is 20 percent, A. would you rather receive $ 100 today or $ 120 in one year ?
B. would you rather receive $ 205 today or $ 240 in one year ?
C. would you rather receive $ 500 in one year ?
you have just won a $ 25 million lottery prize, which pays you 1 million (tax free) every year fot the next 25 years. have you really won $ 25 million? what have you won if the rate of discount is 5 percent ? (note;you will get your first million payment today and your last $ 1 million payment 24 years from now.
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Illustrate what is the price elasticity of demand of a representative gasoline retailer's product.
Vera is an impoverished graduate student who as only $100 a month to spend on food-Explain why Vera's preferences are of a very special type here. How would you graph them?
If the price of a good decreases, the substitution effect shows the increase in the quantity of the good demanded, holding income constant.
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
Illustrate what will be the percent change in hotdog sales if the price of hamburgers goes up by 10%.
Suppose that corn production requires only land and can production requires only labor.
Examination of the company for which you are currently working (or a company with which you are familiar). Answer the following questions regarding this company.
Suppose Firm Y's production function is given by the following Cobb Douglas equation
Monetary approach, elucidate the process by which a balance of payments deficit is corrected under a flexible exchange rate system?
Derive the Aggregate Demand (AD) curve graphically, the experiment is to change Y in i-Y space and see what happens to P.
Elucidate how the market for corn would be affected if ethanol, a corn derivative was used to fuel cars in the United States.
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