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Your bank account pays 7% interest per year. You loan a friend $100 for one year at zero interest. Assuming the loan is paid on time the opportunity cost of the loan is....
$7
$100
$107
$0
The good people at Cooper Bank are looking at five mutually exclusive alternatives that have a ten-year life and no salvage value. Due to intellectual property concerns, they can only invest in one project. Park Bank uses a MARR of 9%. Which one..
Assume the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes
Why do they believe changes in government spending affect the economy differently than changes in income taxes?
How would you characterize the market for crude oil production? Explain your answer. Explain the long run profit behaviour of firms in this kind of industry.
Marty has been laid off from her job at an aircraft plant but expects to be recalled when the economy picks up.
The Company IIE Inc. is considering upgrading their distribution center (DC) and have received investment proposal from four different vendors. The budget limitation for the investment is $1 million. The investment proposals are listed in Table 1...
Suppose your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs;
The Ogden Timber Corporation purchases from its suppliers on terms of 2/10, net 35. Ogden has not been utilizing he discount offered and has not been taking the cash discount offered and has been taking fifty days to pay its bills.
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.
As a production manager who understands the academic argument for free trade working in an company threatened by cheaper imports, how do you react.
Illustrate what do economist mean by this. How do they determine what the right amount of the good is.
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