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Jack is looking to replace the recently sunk Black Pearl. In an uncharacteristically well-behaved moment, he considers buying a new ship with his pirate's hoard of gold. But which to buy? The Retribution costs $7,000 and should last three years, whereas the Mourning Star costs $11,000 and should last 16 years. Jack still has a discount rate of 34%.
What are the macro- and microeconomic indicators affecting the demand and supply forces in the development of a new office building in a suburban office location.
A single firm’s innovations in production technology often benefit the production of other firms, because these other firms learn about the new technology and can use some of the ideas in their own production. Why does this positive externality creat..
Suppose that a decision-maker's preferences can be represented by the expected value of the Bernoulli pay off function u. Find a Bernoulli payoff function whose expected value represents the decision-maker's preferences and assigns a payoff of 1 to t..
A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is −0.8; the cross-price elasticity for wine with respect to the price of beer is 0.9; What is the restaurant's profit (prior to the pri..
1) the mission, vision, and value statement of an actual firm 2) whether or not you feel the firm has been successful in adhering to their statements and 3) provide examples to support your response to number 2
Why do you suppose that some publishers are selling space for advertisements in their e-books-and sometimes even in physical books? From an economic standpoint, how could we explain the willingness of someone to pay $19.99 for a physical book that is..
The efficient market hypothesis states that:
An asset used in a three-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $8,700,000 and will be sold for $1,910,000 at the end of the project. If the tax rate is 34 percent, what is the after tax..
Two fi?rms compete in a duopoly market. Each fi?rm chooses a quantity and the price in the market is determined from the following inverse demand function.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 50 - 0.5P, and the marginal cost of production is $60. Determine the optimal number of units to put in a..
Examine advantages and/or disadvantages of distributing market pesticide permits to each farm operating in eater shed equal to 40% of current levels of use of that pesticide, versus simply ordering each farm to reduce pesticide issues to 40% of cu..
Which of the following is true of marginal cost?
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