NPV
A proposed project should be accepted if the net present value is a. positive. b. negative. c. larger than the internal rate of return. d. smaller than the internal rate of return.
A proposed project should be accepted if the net present value is a. positive. b. negative. c. larger than the internal rate of return. d. smaller than the internal rate of return.
Please help me with the given microeconomics problem for an assignment: There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing pay $25, consumer 5 is
On Thursday nights, a local restaurant has a pasta special. Ari likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table. Quantity of pasta (Servings) Willingness to pay for pasta (per serving) 1 $10 2
Suppose the marginal utility per last dollar spent on hamburgers is greater than the marginal utility per last dollar spent on chocolate malts. Assuming a consumer purchases only hamburgers and malts, what should the consumer do if she wishes to increase her total utility from the consumption of these two goods? Why?
Which is the best answer for the use of sensitivity analysis? It will generally result in one of the following: 1. the calculation of a certainty equivalent NPV 2. the calculation of a best case, a base case and a worst case 3. the calculation of the coefficient of variation 4. the calculation of the probability of the maxim
Mutual interdependence means that a. all firms are price takers. b. each firm sets its own price based on its anticipated reaction by its competitors. c. all firms collaborate to establish one price. d. all firms are free to enter or leave the market.
Some economists have argued that if the government wishes to subsidize health care, it should instead provide predetermined sums of payments (based on the type of health care problems experienced) directly to patients, who then would be free to choose their health care providers. Give an economic rationale for this approach to
Which of the following is not true about the law of diminishing returns? a. It is a short run phenomenon. b. It refers to diminishing marginal product. c. It will have an impact on the firm's marginal cost. d. It divides Stage I and II of the production process. e. All of the above are true.
5. Which of the following is the best example of the "command" process? a. MCI-Worldcom buys Sprint. b. Striking auto workers force General Motors to shut down its factories. c. Banks raise their fees on late payments by credit card holders. d. The FCC requires local telephone companies to provide ac
Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A, where Q = quantity demanded P = product price (in dollars) A = advertising expenditures (in dollars) Assume for the questions below that P = $3 and A = $2,000 Suppose the firm dropped the price to $2.50. Wo
Please help with the following problems. Q= 400 - 3P + 4I + 0.6A Q=quantity demanded P=price I= per capita disposable income A= advertising expense Population is constant 1) Over the next 10 years per capita, disposable income is expected to rise by $5,000. What effect will this have on the firm's sales?
How do the payroll taxes levied on the earnings of workers affect their decisions about how much leisure they consume? When the government taxes younger people to pay benefits to older people, how does this affect the amount of assistance that younger people might voluntarily choose to offer older people? When the governme
See attached file for full problem description. A company is contemplating a research and development program emcompassing eight major projects. The company is constrained from embarking on all projects by the number of available scientist (40) and the budget available for projects ($300,000). Following are the resource
8. Problem-solving question: Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits. a) Number of Workers (L) MRPL MRCL 0 0 0 1 $40 $20 2 70 20 3 40 20 4
On an air rout, an ailine offers two classes of service: busienss (B) and economy (E). The respective demands are given by: For B - P= 540-.5Q For E - P= 380-.25Q Because of ticketing restrictions business travelers cannot take advantage of economy's low fare. The airline operates two flights daily. Each Flight has a
In economics, the main difference between market and government stems from differences in: the majority and the minority competition and cooperation prevailing property rights.
Please help with the following problem. One day a representative of a natural gas company comes to your home and expresses interest in obtaining the mineral rights (including natural gas) to your 1,000-acre homestead. They offer you a flat fee of $10,000 plus and additional $50,000 if they discover gas. You have the option
2. Summarize in your own words Robert Solow's view of using substitutability in applying intergenerational equity to environmental policy. Do you agree with this view? Why or why not?
Cost for a good has increased from $80 to $100 per unit over the previous three years. A person thinks that importing the product from foreign suppliers at a cost of $115.90 per unit may soon be desirable. A. Calculate the companies unit labor cost growth rate using the constant rate of change model with continuous compoundin
Suppose you are a college admissions director and every year you receive 5,000 applications for admission to your school while your school only has 1,000 slots open. Your school is prestigious and has a reputation for producing some of the best and brightest college graduates on the national market. ASSUME that there is NO possi
Consider a market that is initially served by two firms, each of which charges a price of $10 and sells 100 units of the good. The long-run average cost of production is constant at $9 per unit. Suppose a merger will increase the price to $14 and reduce the total quantity sold from 200 to 150. A. COMPUTE -- What is the consume
The company has the choice of selling tickets to its concerts or of selling CDs. Let P1 and Q1 be the price and quantity of concert tickets. Similarly, let P2 and Q2 be the number of CDs. The demand for Concerts is P1=100-12Q1+P2 and the demand for CDs is P2 = 50-3Q2+0.5P1. The marginal cost of selling a concert ticket is 0 and
The alternatives to going out for pizza with my family last night which cost me $30 were: we could have gone to the movies for $30, I could have bought a new C set of my favorite rap group for $25, I could have bought a new sweater for $27, we could have stayed home to watch television virtually for free, or I could have paid do
A FIRM IN A COMPETITIVE MARKET MODEL TENDS TO MAKE ZERO ECONOMIC PROFITS WHEN CHARGING A PROFIT MAXIMIZING PRICE AND A MONOPOLIST HAS NO LIMIT TO THE AMOUNT OF PROFITS THAT CAN BE EARNED WHEN THEY CHARGE THE PROFIT MAXIMIZING PRICE. WHY IS THAT?
A) If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax? (ASSUME NO CHANGE IN THE AMOUNT OF SALES.) B) Why are short-run marginal cost curves expected to slope upward? C) If you know that average cost
Consider a market that is initially served by two firms, each of which charges a price of $10 and sells 100 units of the good. The long-run average cost of production is constant at $9 per unit. Suppose a merger will increase the price to $14 and reduce the total quantity sold from 200 to 150. A. COMPUTE -- What is the consu
Suppose you are a college admissions director and every year you receive 5,000 applications for admission to your school while your school only has 1,000 slots open. Your school is prestigious and has a reputation for producing some of the best and brightest college graduates on the national market. ASSUME that there is NO possi
A) If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax? (ASSUME NO CHANGE IN THE AMOUNT OF SALES.) B)Why are short-run marginal cost curves expected to slope upward? C)If you know that average costs are
Using the economic theory of Human Capital, describe and explain the theoretical basis for income changes over the life cycle. In other words, why it is that earnings increase at a decreasing rate, as one ages (why are returns diminishing - as is observed empirically)?
Daaz Hagen and Jerry Ben's are both trying to decide what kind of ice cream machines to purchase. The profits earned by the two firms in each possible outcome are listed below with Daaz Hagen profits listed first in each cell. Suppose that the two firms are going to make their purchases at the same time. a. Does either firm