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You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest.What is the opportunity cost of spending the $100 now?
Why do you think firm 1's marginal cost is lower than firm 2's marginal cost? Determine the current profits of the the two firms. What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm continued to charge $8?
suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or Why not?
How might prohibitions on advertising affect the cigarette industry in the short run, and in the long run using a Prisoner's Dilemma sort of argument.
Suppose the Wal world and tarbo are independently deciding whether to implement a new bar code technology. It is less costly for thier suppliers to use one system and the following payoff matrix shows the profits per year for each company resultin..
Discusses how externalities relate to the willingness to pay (WTP) analysis and demonstrates solid ability to accomplish the assignment
Consider the six reform proposals suggested by the authors at the end of this feature. Indicate why you believe each is either a good or a bad idea
What are governments fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by a person who wants to preserve the size of government and a person who thinks the public sector is ..
In many developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater eductional oppotunities for young women could lead to faster economic growth in these countries
This table summarizes the results from an experiment like yours. Compare the outcome under free access with the three outcomes in which the government uses licenses to limit the catch. Roughly how much additional protein is there for the econo..
Sandra purchases 5 pounds of coffee and 10 gallons of milk per month when the price of coffee is $10 per pound. She purchases 6 pounds of coffee and 12 gallons of milk per month when the price of coffee is $8 per pound.
The company pays a $2 annual cash dividend. After a year has passed the seller cover a short position of $42. Then what is the percentage return on the position?
Starting with the estimated demand function for Chevrolets given in Problem 2, assume that the average value of the independent variables changes to N=225 million, I =$12,000, P= $10,000 P= 100 cents, A=$250,000 and P=O
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