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1. When will an investment's net present value be positive? Given its sign, should you invest in this project?
2. What advantage does net present value analysis have over the use of payback periods to evaluate investment decisions?
3. What is the approximate relationship between an investment's nominal interest rate and its real interest rate?
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk. Coffee costs $1 per ounce and milk costs $0.5 per ounce. How much coffee and how much milk will Sheila buy per..
What profit will each make in this new situation?
There are significant reductions in the amount of water that avocado farmers are allowed to use in California, where most U.S. avocados are grown.
Now suppose that Amy and Beau compete as Cournot duopolists. What is the Cournot equilibrium price? What is total market output, and how much profit does each seller earn?
What do you think would happen to health care expenditures in the United States under either the ACA or a single-payer plan? Consider the following:
Plot this utility function for values of income in the range 1. . . 36.
This Christmas, you decide to buy your true love a partridge in a pear tree. After consulting with several garden centers, you make your purchase by writing a check for $150. The garden center promptly deposits your check in its bank.
The marginal cost of the public good is $180. What is the economically efficient level of production of the good? Illustrate your answer on a clearly labeled graph.
Would you look for another place to shop or continue to shop there but voice your dissatisfaction? What factors might influence your decision?
why is the effect on equilibrium output finite? and How do I know that the multiplier is 1/MPS?
What is the number of logging operations in the forest that maximizes total profits in the industry (ignoring externalities)? How much total resource rent is generated at this level of harvest?
Which combination(s) in part (c) lie inside the affordable set, and which lie on the boundary?
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