On June 1, you win $1 million in a lottery and imme- diately acquire numerous "friends," one of whom offers you the deal of a lifetime. In return for the milion, she'll pay you a cent today, two cents tomorrow, four cents the next day, eight cents the next, and so on, stopping with the last payment on June 21.
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- Assume that the parcels are essentially identical and that the minimum selling price of each is $575,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase Person (Dollars) Andrew 520,000 A-Z Beth 510,000 Lorenzo 750,000 Neha 660,000 Sam 600,000 Teresa 550,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. O Andrew Beth O Lorenzo O Neha O Sam O Teresa Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $535,000. This fourth will nurchase it from the seller for at least the minimum ncice be sold because parcel MacBook Air F12 O O O3. Which lottery payout scheme is better? Suppose you win a raffle held at a neighborhood elementary school fundraiser and are given the choice between two different ways to be paid. You can either accept the money in a lump sum immediately or in a series of payments over time. If you choose the lump sum payout, you receive $2,950 today. If you choose to collect payments over time, you receive three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 10% per year, the winner would be better off accepting the present value. since that choice has the greater At an interest rate of 12% per year, the winner would be better off accepting since it has the greater present value. A couple years after you win the raffle, you and your friend are back at the same event. This time, your friend gets lucky and wins the contest, and you both realize the payout schemes are the same as they were back when you won. They now face the decision between…10. Which lottery payout scheme is better? Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum payout, you get $3,000 today. If you pick the payments over time payout, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today. At an interest rate of 6% per year, you would be better off accepting the At an interest rate of 8% per year, you would be better off accepting the It will depend on the interest rate; advise her to get a calculator. lump sum The lump sum payout is always better. The payments over time payout is always better. None of these answers is good advice. payout since it has the greater present value. payments over time Years after you win the lottery, a friend in another country calls to ask your auvice. Dy wild comcidence, she has just won another lottery with the same payout schemes. She must make a quick…
- 3. Which lottery payout scheme is better? Suppose you win a raffle held at a neighborhood elementary school fundraiser and are given the choice between two different ways to be paid. You can either accept the money in a lump sum immediately or in a series of payments over time. If you choose the lump sum payout, you receive $3,000 today. If you choose to collect payments over time, you receive three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today At an interest rate of 6% per year, the winner would be better off accepting the value. since that choice has the greater present At an interest rate of 10% per year, the winner would be better off accepting A couple years after you win the raffle, you and your friend are back at the same event. This time, your friend gets lucky and wins the contest, and you both realize the payout schemes are the same as they were back when you won. They now face the decision between collecting their prize as a lump sum or as a…3. Which lottery payout scheme is better? Suppose you win a raffle held at a minor league baseball game and are given the choice between two different ways to be paid. You can either accept the money in a lump sum immediately or in a series of payments over time. If you choose the lump sum payout, you receive $3,000 today. If you choose to collect payments over time, you receive three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 6% per year, the winner would be better off accepting the value. , since that choice has the greater present O The lump sum is always better. The payments over time are always better. O It will depend on the interest rate; advise her to get a calculator. O None of these answers is good advice. At an interest rate of 10% per year, the winner would be better off accepting A couple years after you win the raffle, you and your friend are back at the same event. This time, your friend gets lucky and wins the…3. Which lottery payout scheme is better? Suppose you win a raffle held at a neighborhood elementary school fundraiser and are given the choice between two different ways to be paid. You can either accept the money in a lump sum immediately or in a series of payments over time. If you choose the lump sum payout, you receive $3,100 today. If you choose to collect payments over time, you receive three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 7% per year, the winner would be better off accepting the value. At an interest rate of 9% per year, the winner would be better off accepting since that choice has the greater present O The lump sum is always better. O The payments over time are always better. O It will depend on the interest rate; advise her to get a calculator. O None of these answers is good advice. , since it has the greater present value. A couple years after you win the raffle, you and your friend are back at the…
- How many cryptocurrencies have lasted more than a few years? O nearly zero percent of the current amount of cryptocurrencies about half most O 100% O not enough infoYou and your friend will divide $4. You have agreed to use the following procedure.Each of you will name a number of dollars, either $0, $1, $2, $3, or $4. You will chooseyour numbers simultaneously. If the sum of the amounts is less than or equal to $4, theneach of you receives the amount you named and the rest of the money is thrown away.If the sum of the amounts is greater than $4 and the amounts named are different, thenthe person who named the smaller amount receives that amount and the other personreceives the remaining money. If the sum of the amounts is greater than $4 and theamounts named are the same, then each receives $2. (a)Draw the payoff matrix of this game. Let “you” be the row player and “yourfriend” be the column player.(b) Derive the best reply functions of all players.(c) Find the Nash equilibrium (or all of the equilibria) of this game using thebest reply functions you found in part (a).Ans both Otherwise dont ans
- $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400 $7,200 $7,000 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $million The graph above shows the market for a one-year discount bond with a face value of $10,000. The new government promises to reduce the inflation rate by 7.25 percent. People have strong trust in their government and, so, they expect the inflation rate to decrease by 7.25 percent. According to the Fisher effect, the the price of this bond will (approximately) change to: Bond Price3. Which lottery payout scheme is better? Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, you get $2,800 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. A At an interest rate of 6% per year, the winner would be better off accepting the value. At an interest rate of 9% per year, the winner would be better off accepting , since that choice has the greater present The lump sum is always better. O The payments over time are always better. It will depend on the interest rate; advise her to get a calculator. O None of these answers is good advice. since it has the greater present value. Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick…Why might it be difficult for a buyer and seller to agree on a price when imperfect information exists?