Who had been running a profitable business for many years

Assignment Help Econometrics

Reference no: EM13241847

A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner the legal right to sell beer, wine and spirits in her restaurant. The cost of obtaining the license was $75,000, since only 300 such licenses are issued by the state. While the license is transferable, only $65,000 is refundable if the owner chooses not to use the license. After selling alcoholic beverages for about one year, the restaurateur came to the realization that she was losing dinner customers and that her profitable restaurant was turning into a noisy, unprofitable bar. Subsequently, she spent $6,000 placing advertisements in various newspapers and restaurant magazines across the state offering to sell the license for $70,000. After a long wait, she finally received one offer to purchase the license for $66,000. Would you recommend she accept the offer, why?

Reference no: EM13241847

Questions Cloud

Analyze the primary potential benefits of learning : Assess the value of healthcare professionals and decision makers understanding the discipline of health economics. Defend or critique the importance of considering the complex nature of health and healthcare when examining the economic principles rel..

Would you make side-impact airbags standard equipment : According to an article in The Wall Street Journal, side-impact crashes are among the deadliest, accounting for nearly 10,000 deaths per year. Child safety concerns have kept auto manufacturers from making side-impact airbags

Calculate the steady-state values of capital per worker and : Output per worker yt = 4kt 1/3, the saving rate is 30 percent, and the depreciation rate is 13.3 percent. Calculate the steady-state values of capital per worker and consumption per worker.

Explain what is the pressure in the flask after the reaction : A mixture of gases containing 0.40 mol of SO2 and 0.20 mol of O2 in a 4.0L flask reacts to form SO3. If the temperature is 25oC, what is the pressure in the flask after the reaction is complete

Who had been running a profitable business for many years : A local restaurateur who had been running a profitable business for many years recently purchased a three-way liquor license. This license gives the owner the legal right to sell beer, wine and spirits in her restaurant.

Define the difference between the bohr model : Explain the difference between the Bohr model for the hydrogen atom and the quantum-mechanical model.

What is the amplitude f oscillations : A spring with a spring constant 15.0 N/m hangs from the ceiling. A 300g ball is attached to the spring and allowed to come to rest, What is the amplitude f oscillations after 2.0 minutes

When most consumers and firms reduce spending only because : When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending, and a recession results, A. a real-business-downturn has occurred. B. a self-correction has occurred. C. a coordination failure has o..

In building the aggregate expenditures model : Which one of the following statements about discretionary fiscal policy is correct? A. Discretionary fiscal policy refers to any change in government spending or taxes that destabilizes the economy. B. Discretionary fiscal policy refers to the change..

User Account

All Pages