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You are buying a new Porsche Boxter, priced at $65.200. You will pay $4,700 now and the rest monthly, in a four-year loan. All rates are monthly compounded APRs. The automobile dealership is offering a sales promotion where either:
A. You will receive $2,000 discount cheque now and the annual interest rate on the loan is 6.1 percent, or
B. The annual interest rate on the loan will be 1.2 percent but there is no discount.
Compare the two options by calculating the present value of each option, assuming the discount rate is 8 percent. Which option is a better deal?
Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
Conclude your planning document by providing insights you gained from this assignment that you had not initially gleaned from the course material or textbook.
A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 42000 +0.001Q^2 and a marginal cost given by MC=0.002Q. If the market price is 15, what is the firm's profit-maximizing quantity?
Which of the following is a condition for profit-maximization in a perfectly competitive firm? A perfectly competitive firm should shut down in the short run whenever, at the best possible output _____. A technology advance in a perfectly competitive..
A perfectly competitive firms average fixed cost function is AFC = 30/Q, its average variable cost function is AVC = 6 + 0.1Q, and it marginal cost function is MC = 6 + 0.2Q. The firm optimizes by producing the level of output that maximizes profit o..
Although airline schedules and cost are important factors for business travelers when choosing an airline carrier, a USA Today survey found that business travelers list an airline’s frequent flyer program as the most important factor.
Why is discipline the most significant issue for the union and management organizations? Describe how this significance has shifted over time.
In your opinion, using the example of minimum wages, is price- setting by the government justifiable or desirable in our economy?
Excess capacity is a problem in monopolistic competition because if there were fewer firms in the industry: The model of monopolistic competition characterizes a city's market for plumbing services. Suppose that the market is initially in long-run eq..
Which of the following will likely increase net exports? Banks turn a profit by
Briefly introduce the company Starbucks, describe how Starbucks are using electronic media and e-mail. What type of media is Starbuck using and who is the audience.
Small country Alpha exports lumber products obtained by cutting Alpha's forests. Cutting the forests creates negative external effects in Alpha.
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