301 paper Economics 301 Managerial Economics Homework 1 1) Beginning in year 0‚ with a payment of $50‚000‚ what is the present value of an asset in perpetuity which grows by 4% each year and which is discounted at the rate of 6% each year? 2) Should we proceed with a project that will pay us $100 million per year for the next five years in return for an investment of $400 million today? Why‚ or why not? Assume the interest rate of 5% per year. 3) Chapter 1 problem 9 4) Let
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Chapter 2 MCQ’s 1) According to the Law of Demand‚ the demand curve for a good will A) shift leftward when the price of the good increases. B) shift rightward when the price of the good increases. C) slope downward. D) slope upward. Answer: C 2) An increase in the price of pork will lead to A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve. Answer: A 3) An increase in consumer incomes
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Price - Elastic Products With the question as stated: When would you want to own a business that sells price-elastic products? I think that any time could be a good time to own a price-elastic business. Obviously‚ the most opportune time would be when the economy is in the state that it is in today. The best kind of business to be in would be a store like Wal-Mart. Because the fact that Wal-Mart can offer almost countless products for sale‚ the price point on any one product can cause a great
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Crashing Projects Exercise Given below is the information for the IT project we discussed in our Week 5 commentary and its network diagram. In the Week 5 commentary‚ we crashed the project by three days‚ i.e.‚ from 20 to 17 days by crashing Activity C for two days and Activity F by a day. Now proceeding from here: Activity ID Predecessor Normal Time (Days) Crash Time (Days) Normal Cost Crash Cost ($’000) ($’000) A - 5 2 $100 $205 B - 6 3 $140 $205 C - 7 5 $140 $200 D A‚ B 6 2 $100 $340
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in this course. If you are not comfortable with basic algebra or geometry‚ if you are not eager to extend your abilities in mathematical modeling‚ or if you are seeking only a general overview of economists’ views on various topics‚ this section of ECON 201 may not be the best match for your interests. If you want rigorous (if basic) economic analysis to become a natural part of your own thought process and expect this course to be your first step rather than your last along this path‚ then I believe
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co 550 Assignment 3 Assignment 3 1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn’t matter which side it is as long as everyone chooses the same side. Otherwise‚ everyone may get hurt. a. Does either player have a dominant strategy? Explain. I don’t believe that either player has a dominant strategy. Dominant strategy is “a strategy that results in the best outcome or highest payoff to a given player no matter what action
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BRANDEIS UNIVERSITY Department of Economics Economics 10a Mr. Coiner Introduction to Microeconomics Fall‚ 2012 Problem Set 2 1. This question examines the impact of 5 events on the market for large automobiles with relatively low gas mileage and relatively high emission levels (think Hummer). Answer each part separately. For each event‚ indicate which curve (D or S) shifts‚ indicate in which direction (left or right) it shifts‚ and show in a demand-supply diagram in which
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Topic 10: The Transition Period I. The Free Trade Era in Europe. During the mercantilist era‚ trade was seen as a zero-sum game: one country’s gain was another country’s loss. If Spain imported more from England that she exported to England‚ she had to send specie to England to make up the difference. In the mercantilist view‚ this was viewed as a loss for Spain and a gain for England. So‚ countries established policies to encourage favorable trade balances: they subsidized export industries
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1. State and explain any two advantage of a monetary economy. State and explain any three functions of money. In monetary economy is an economy where goods and services are exchanged for money. It can avoid double coincidence of wants‚ for example‚ one person is willing to use a bag of rice to get a bag of tea; another person is willing to use a bag of tea to get two apples. These two parties can not trade easily for their goods because in a barter economy people have to find exact goods and
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1. List the three largest categories that make up the market basket that is used to compute CPI. According to Figure 1 in our textbook‚ there are many categories that make up the market basket used to calculate CPI. They are Housing‚ Transportation‚ Food and beverages‚ Medical care‚ Recreation‚ Education and communication‚ Apparel‚ and other. The three largest categories consist of Housing at 43%‚ Transportation at 17% and Food and beverages at 15%. These three combined make up 65% of the market
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