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Caitlin’s brother-in-law has a 1924 Ford Model T car that is worth $15,000, stored in a barn in Alaska. It increases in value about $500 each year as old Fords become more rare. He is willing to sell it to her today, but it will be three years before she has an opportunity to ship it back to Alabama (at that time, shipping will be free, because her sister is moving a truckload of stuff down from their Alaska farm). When Caitlin gets it here, she plans to sell it right away. If Caitlin’s discount rate is 12%, what is the most she should pay today for the car?
We discussed the possibility that a start up firm in San Francisco plans to 3-D print Rhinoceros horns that are indistinguishable from real horns. Assume they are able to produce these horns cheaply. Suppose the price elasticity of demand for heating..
The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.
Describe each of the following economic functions of money and provide an example of each: (1) medium of exchange; (2) standard of value; and (3) store of value.
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and ex..
Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. Discuss which of these countries seems ..
It is important to remember that in a communist society difference between value of machine and value of labour-power replaced by it will always vary. Are you still thinking that Capital is blueprint for society.
A group of 20 doctors are considering forming a new medical group also has asked you to prepare a report on whether they should build a facility in an area.
Illustrate what type of industry benefits the most from technological innovation? Select an article from either either a peer reviewed or current popular periodical on an industry of your choice and discuss this question from the perspective of th..
The case for the Federal Reserve independence includes the idea that
To determine horizontal equity, two taxpayers with
Illustrate what is the maximum amount you will pay for the new process. Suppose that the new process must pay for itself by the end of the first year.
Explain the assertion that businesses can lose rights if they do not diligently assess and pursue intellectual property protection.
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