![]() Answer: A Diff: 2 Section: 7.1 3) Farmer Jones bought his farm for $75,000 in 1975. D) It depends on what the rate of interest was. C) It depends on what the rate of inflation was between 19. Should Alice exercise the option and pay $100,000 for the land? A) Yes. When she acquired the option in 1985, the land was worth $120,000. By paying the $20,000, she bought the right to buy the land for $100,000 in 1992. Answer: C Diff: 1 Section: 7.1 2) In 1985, Alice paid $20,000 for an option to purchase ten acres of land. D) Neither, Fly by Night has lower costs at small output levels and Fly Right has lower costs at high output levels. Which airline has the lower costs? A) Fly Right. If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 a year. Microeconomics, 7e (Pindyck/Rubinfeld) Chapter 7 The Cost of Production 1) Two small airlines provide shuttle service between Las Vegas and Reno. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |