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How do costs play into your everyday life? For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate? Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)?
Microeconomics, Economics
Question: For linear demand and constant marginal cost, explain in commonsense terms why the deadweight loss of monopoly is greater the flatter (more elastic) the demand curve. The response must be typed, single spaced, ...
Question: Suppose in Singapore the velocity of money is constant, real GDP grows by 7% per year, the stock on money grows by 10% per year, and the nominal interest rate is 8%. (a) According to the quantity theory, what m ...
Question: A contractor is considering purchasing a CAT 635E scraper. The loan the contractor is considering is a 36 month loan and requires a down payment of $75,000 and monthly lease payments of $10.000. The contractor ...
Question: Jones has organized a proxy fight to take control of XYZ corporation. He purchases several million shares on the market (which he can vote) and simultaneously sells them short. Thus, disregarding the cost of ar ...
Question: According to some reports, more than 40 percent of the American servicemen sent to Vietnam experimented with heroin. Of these, 57 percent became addicts in Vietnam. Upon their return, however, only 10 percent r ...
Question: 1. Identify and evaluate consequences of government price supports and subsidies in U.S. farming markets. 2. Do rent ceiling laws for apartments result in an efficient allocation of apartment units? Why or why ...
Question: Teaming Across Distance and Culture 1. Brainstorm some ways to "redesign" your office space (or an office space you have previously worked in) on paper using virtual or flexible space, or flexible furniture. Ho ...
The Google Play and Apple App Stores each have over a million apps available for download. One of the top selling apps on the Google Play store is Minecraft. Suppose Minecraft previously received 5,800 downloads per day ...
Question: Which entities in the Federal Reserve System control the discount rate? Reserve requirements? Open market operation? In what ways can the regional Federal Reserve Banks influence the conduct of monetary policy? ...
Question: Consider the industry in which you work, or one about which you have some knowledge. What are the costs and benefits associated with attempting to bar entry of other firms into this industry? How would a firm e ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As