The Parks and Recreation department is trying to decide whether it should continue, expand, or cancel the laser show program. Laser Tech Co can provide the standard 20-minute display that the county typically books for $20,000 or put together a deluxe 50-minute program complete with a grand finale for $30,000 . They also offer a budget laser show, 12 minutes long, for $10,000 . Typically, about
15,000 community members attend the show, and research has shown that attendees would be willing to pay $2 per person. Which of these is the best choice for the Parks and Recreation Department?
a. Cancelling the laser show
b. Booking the budget laser show
c. Booking the standard laser show
d. Booking the deluxe laser show
d
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The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a Russian tea cake?
A) $2.50 B) $1.00 C) 2 1/2 cappuccinos D) 2/5 of a cappuccino
Scott receives a producer surplus of $1,000 from selling a baseball bat. If the market price of the bat is $1,500, the minimum price at which Scott was willing to sell the bat is $500
a. True b. False Indicate whether the statement is true or false
A family has decided to go away for the summer. The monthly mortgage payment on the family's house is $1,000 . Water, electricity, natural gas, and maintenance bills, to be paid by the family, will be $700 per month if the house is occupied and zero otherwise. If the family wishes to minimize losses from being away, it should rent the house for as much as the market will bear, as long as the
monthly rent is above which of the following? (Assume wear and tear to be the same whether or not the house is occupied.) a. $300 b. $700 c. $1,000 d. $1,700
Which of the following best expresses the formula for determining the price of a U.S. Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?
A. $100/(1 + i)n B. 1 + $100/(1 + i)n C. $100/(1 + i) D. $100(1 + i)