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You own a tract of trees and are deciding whether to harvest them now or next year. If you harvest them now, you can invest the proceeds and get a return of 5% on your investment. What should you do?? a. ?Let the trees grow as long as their dollar worth increases by less than 5% b. ?Cut down the trees, and sell them c. ?Let the trees grow d. ?Let the trees grow as long as their dollar worth increases by more than 5%
Two firms are competing for output. Leader firm market demand is P=1200-Q and other firm demand is Q2=400-0.5Q1. Marginal cost for both is $200. How much is output for firm 1 and 2?
Illustrate at what output level would the monopolist produce. Illustrate at what output level would a perfectly competitive firm produce.
Analyze the major effects that relative interest and inflation rates could have on a country’s currency. Suggest the crucial steps that a company could take in order to minimize the adverse effects of currency fluctuations. Evaluate the efficiency of..
Provide an intuitive explanation of the Principal-Agent problem and discuss any mechanisms used to mitigate the problem. You should use the business owner-manager problem as an illustration.
q.sometimes a bidder on a work contract may bid lower than what would maximize hisher profit from the contract and the
Two manufacturing firm, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck o..
Taxes and negative externalities? Taxes on negative externalities are intended to make consumers / producers pay the full social cost of the good. This reduces consumption and creates a more socially efficient outcome. Agree?
Supposes cost of consumer market basket rose from $200 in base year to $225 in current year. Calculate CPI in current year and percentage change in prices between base year and current year.
Explain how does monetary policy work to close an inflationary and recessionary gap using the keynesians model and what is the link.
If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium?
The rule for maximization set forth in the text contradicts some honored traditional principles such as 'never give up' . Anything worth doing is worth doing well, or waste not, want not' explain the contradiction for each of these rules.
When a U.S. citizen buys goods from a foreign merchant, the goods are usually paid for by having the U.S. citizen send a personal check or dollars directly to the exporter. Foreign exchange refers to. Meetings among the leaders of the Group of Seven ..
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