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Bailey, Kaylee, Haley, and Joyce are sorority sisters who have discovered an opportunity to purchase an Internet café. Each of the women would have to put up $80,000 to make the purchase. The revenue from the café is expected to remain constant at $225,000 per year for the next several years. The costs (not including the opportunity costs of the investment) of operating the café are expected to remain constant at $185,000 for the next several years. The current market interest rate on enterprises with comparable risks is 9% per year. Should the four sorority sisters purchase the café? Explain
Two firms, i = 1,2, produce the same good. Each firm i's cost of producing quantity q_{i} is given by C_{i}(q_{i}) = q{_{i}}^{2} . The market demand is given by P_{d}(Q) = a-Q for all Q = q_{1} + q_{2}\leq a (with P_{d}(Q) = 0 for Q> a).
If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation? What is the "rule of 70"? How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per year?
Explain which of the following transactions would be directly counted in 2013 's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export.
suppose the mpc is 0.9. there are no crowding out or investment accelerator effects. if the government increases its
Discuss how pricing affects consumer purchasing, particularly the purchasing trends of individual households
A flood control project with a life of 18 years will need an investment of $200,000 and annual maintenance costs of $15,000. The project will provide no benefits for the first two years however will save $80,000 per year in flood damage starting in t..
farida has us 55 to spend on apples and oranges. given the information in the following table is farida maximizing
Find the correlation coefficient between X and Y. Provide an explanation for your answer to part 2
Dad plans to take the two children Bart and Cassie on an outing. Bart prefers Disneyland (D), but Cassie prefers the Modern Art Gallery (M). Each child gets 3 units by going to the more preferred place and 2 units by going to the less preferred place..
A city that operates automobile parking facilities is evaluating a proposal to erect and operate a structure for parking in its downtown area. Three designs for a facility to be built on available sites have been identified as follows, where all d..
Describe what you would do at the first day of your job in a purchasing and supply management function - Describe kinds of information and data that you believe would help you as an inexperienced newly hired associate of a purchasing and supply man..
1. Using the relationships between macro variables of Inflation, Income and wage rate, technology, unemployment, and interest rates related to Comcast, develop a short-term (about one year) outlook for Comcast.
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