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Question: A mine is for sale for $240,000. It is believed the mine will produce a profit of $65,000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would this $240,000 investment produce for the purchaser of the mine?
Why do Coca-Cola and PepsiCo spend huge amounts on advertising? Do they benefit? Does the consumer benefit? Explain your answer by constructing a game.
As a manager of a firm you find the marginal cost of the firm to be $10 and the fixed cost $100. For the range of prices that you are planning to charge, own price elasticity of demand is believed to be –1.25. Compute the optimal (profit maximizing) ..
In the Heckscher-Ohlin model studied in the slides, suppose that K/L = K*/L* but preferences (as reflected in the relative demand RD) may be different.
In a linear demand equation, what economic information is conveyed by the intercept on the price axis? Similarly, what economic information is conveyed
we have established a relationship between net capital outflow nco and the trade balance net exports. during this
Based on your background knowledge, do you expect there to be a relationship between a country's level of political freedom and amount of terrorism
Find the predicted annual salary and prediction error for employee 33 and compare the result to the actual annual salary.
You are the monopoly seller of computers and monitors. Remarkably, the costs of production for both products are zero. You sell to a market consisting of two segments (A and B). The RP's of each segment for computers and monitors are the following..
Assume that both the equilibrium price and quantity of golf clubs rise. Which of the following explanations would best explain this outcome?
John and Terry are both stranded on an island and looking for food. There are Boar and Mangos on the island. What is the opportunity cost for John to find a mango? What is the opportunity cost for Terry to kill TWO boar
Why do you (probably) not object to the airline practice of bribing passengers off the plane, but you (probably) would object if you learned that the airline.
Finally, the worker's rate of discount is 10 percent. What is the highest level of migration costs that a worker is willing to incur and still make the move?
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