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A man had to have the muffler replaced on his 2-year-old car. The repairman offered two alternatives. For $300 he would install a muffler guaranteed for 2 years. But for $400 he would install a muffler guaranteed "for as long as you own the car." Assuming the present owner expects to keep the car for about 3 more years, which muffler would you advise him to have installed if you thought 20% was a suitable interest rate and the less expensive muffler would only last 2 years?
Suppose that the way that the workers’ compensation system currently works is that an employee permanently injured on the job receives a payment of $X a year each year, regardless of whether he works or not. Suppose that the way that the workers’ com..
A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits:
A country will likely experience an increase in poverty if
When prices are (p1, p2) = (1, 2) a consumer demands (x1, x2) = (1, 2), and when prices are (p1, p2) = (2, 1) the consumer demands (x1, x2) = (2, 1). Is this behavior consistent with the model of maximizing behavior?
Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
Examine the costs of production for Netflix, analyze the various costs Netflix faces and their trends over time, and how they have impacted Netflix's.
If you invest $1,000 into a savings account at an annual interest rate of 5% (APR), compounded semi-annually, how much will you have in the savings account.
Check your client's Web site to find out if it discusses its business plans for now and in the future. This is often found in a public company's annual report. Private companies sometimes list their business activities under the "About Us" or "Newsro..
Goal of this assessment: To understand the process to make a full page advertisement for an organization.
Charlie has a utility function U(A, B) = A2 B3 , the price of apples is $3, and the price of bananas is $2. If Charlie’s income were $120, how many units of apples would he consume if he chose the bundle that maximized his utility subject to his budg..
Assume 3 firms, A,B, and C, compete for market share via quantity competition. Assume all firms have the same constant marginal costs cA = cB = cC = 1 and that market demand is given by D(p) = 101 minus p. Solve for the unique N.E.
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