You are thinking about making an investment in the widget company. to decide how much your investment should be, you decide to run a net present value calculation on the 5 year (60 month) proforma. you build a proforma with the following assumptions: month 1 revenue: $100,000 expenses $95,000 net operating income (noi): $5,000 each month the revenue grows at an annualized rate of 10% and the expenses drop at an annualized rate of 3%. at the end of 5 years you determine that the widget company will have a noi of $81,214 in month 60 and you place a terminal value on the company at the end of 5 years at $1,000,000. you calculate the monthly profits for the widget company and add up each of the 60 months to get a total profit number of $2,444,468. so your investment will generate $2,444,469 in profits over 60 months and then at the end of 60 months you believe you can sell the company for $1,000,000 (the terminal value). however, there is risk in the investment as the widget market is not a sure thing and so you apply a 15% discount rate to the monthly profits and the same to the terminal value. based on this calculation, what is the most you should want to pay for the widget company?

Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

Any point on a country's production possibilities frontier represents a combination of two goods that an economy: