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Q1-You are on the board of directors of a nonprofit art museum supported bydonations from wealthy members of the community, and are responsible foracquiring new works and staging exhibitions for the public. You are clearly anagent, but who is (are) the principal(s)?
Q2- Why might a parent company like McDonalds or Hilton choose to franchise itslocal outlets rather than own them and staff them with employees? In manysmaller cities all McDonald's outlets are owned by the same franchisee. Why is (orisn't) this fact consistent with our discussion of specific investments?
The discussionin Section3 .7 suggestst hat Give up is optimal for Rich as long as (i) Kelly is very likely to win the immunity challenge once Rich gives up and
The industry has been very fragmented, so that few companies have the financial backing to make heavy investments in new technology and equipment.
In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million.
Current economic theory and their application or lack of application to contemporary economic problems
a firm must raise $10 million dollars in funding for a capital investment project. $2 million will be raised by issuing debt with an interest rate of 10% while the remainder will be raised by issuing stocks that will yield a return of 12%.
what advice would you give as the economic analysis team and Your client states that it is worth $4,000 annually to be his own boss and not be a butcher any more. Would that change your advice? How and why?
Estimate the cash flow to be included in the horizon year and what will be the horizon value if there is no profit growth?
Suppose that a country's central bank has price stability as the primary objective. Describe how the central bank conducts monetary policy in times of rising energy prices
Compute the value of the marginal propensity to save. Compute the amount of autonomous planned spending, Ap, given that the interest rate equals 5. Compute the equilibrium level of income, given that the interest rate equals 5.
Sketch the indifference curves and show where the "corners" are. If the prices or x and y are P_x = 5 and P_y = 1, respectively
Cities do not reproduce themselves. Why do people move to some cities and away from others You may want to examine why some cities grew from 1990 to 2000, but you need to examine key concepts that underlie urban growth.
Assume that a simple society has economy with only one resource, labor. Labor can be employed to produce only two commodities- X, a necessity good (food) and Y, a luxury good ( music and entertainment). Assume the economy produced at a point inside..
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