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If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we are leaving the investment alone and not adding to it.
When the farmer makes this discovery, what happens to the opportunity cost of wheat, measured in bushels of corn?
Explain how many units of labour will Valentines hire. What wage per unit of labour will Valentines pay.
q.start at the original correct equilibrium cost and quantity in part a. assume which the government wishes to decrease
If farmers were to decry the effect of this new technology on the price of milk and lobby government to set the price of milk at the price before the invention, elucidate the result.
Can goals like avoiding unethical or illegal behavior be in conflict with the goal of the firm. Explain how does this complicate the agency problem.
Assume there is a simultaneous increase in government expenditure also reduction in the funds provide.
Draw the game tree associated with this situation. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..
Since the cash flows compose a gradient series followed by a uniform series, solve the problem using those factors. Determine the FW of the cash flows.
How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility? How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probabil..
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