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"What is the present value of $62000 to be received in 7 years if the interest rate is 8 percent?" "How much would Ihave to invest now in order to receive $62000 after 7 years, given an interest rate of 8 percent?" Are the answers to these questions the same, different or it is impossible to say? Explain your answer in a couple of sentence.
You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of children's outdoor swing sets, believes that reducing prices would lead to more sales. identify and evalua..
Explain how much he finishes up paying each provider every month. Explain how much customer extra he obtains with each provider.
Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than accounting expense data. Present how to make the most economical downsizing decisions. Include the mix of capital..
The demand for ice cream is given by QD = 20 − 2P, measured in gallons of ice cream. The supply of ice cream is given by QS = 4P− 10. Suppose that government legislates a $1 tax on a gallon of ice cream, to be collected from the buyer. As a result of..
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
If the variable is almost normally distributed does that mean you use common distribution.
Elmer Fudd likes to hunt “wabbits” but also likes to hunt duck. His utility function can be expressed as U(W,D)= 1/(-(2W^2+D^2 )^2 ). Solve for the marginal utility of both “wabbits” and duck. Write the tangency condition, what can you tell me about ..
Suppose the candle manufacturing industry is organized as a perfectly competitive market i.e. it consists of many firms with identical cost structures. A single firm's long-run average total cost function is “U” shaped and minimized at an output of q..
Explain how is the activity reflected on the balance on current ccount different from the activity reflected on the capital.
If n, d, z, α, s are the same for two country A and country B, but today the level of capital per capita is higher in country A. What does the Solow model predict for the short term growth rate of income per capita for these two countries? What is th..
Tina is very particular about her purchases: She only buys hot dogs and soda, and every time she makes purchases she buys exactly three hot dogs and soda. She would never buy three hot dogs without a soda, and would never buy a soda without three hot..
For which of the following goods would a 10 percent price increase lead to the largest income effect for most consumers?
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