A consumer values a car at $35,000 and it costs a producer $20,000 to make the same car. If the transaction is completed at $29,000, the transaction will generate

A.) $29,000 of total surplus.

B.) $15,000 worth of seller surplus and no buyer surplus.

C.) $6,000 worth of buyer surplus and $9,000 of seller surplus.

D.) $9,000 worth of buyer surplus and $6,000 of seller surplus. Suppose there are nine sellers and nine buyers, each willing to buy or sell one unit of a good, with values {$10, $9, $8, $7, $6, $5, $4, $3, $2}. If the government imposes a price floor at $9 (i.e., price must be $9 or higher), how many goods will be traded?

A. Five

B. Four

C. Three

D. Two Suppose there are nine sellers and nine buyers, each willing to buy or sell one unit of a good, with values {$10, $9, $8, $7, $6, $5, $4, $3, $2}. If the government imposes a price floor at $9 (i.e., price must be $9 or higher), how many goods will be traded? You are asked to make an investment of $20,000 into your friend's business. She promises to make you a partner and guarantees that you will earn $2,000 in a year from now, $4,000 two years from now, and a large payday of $18,000 three years from now. If interest rates are 10%, should you invest in her business?

A. Yes, because the NPV is negative.

B. Yes, because the NPV is positive.

C. No, because the NPV is negative.

D. No, because the NPV is positive. The minimum probability of a guess to make playing still profitable is 33.3%. $1,000,000(x) + (-$500,000)(1-x) = 0 $1,000,000x -$500,000 + $500,000x = 0 $1,500,000x = $500,000 X = ($500,000/$1,500,000) X = 1/3 = 33.3% 8th EditionN. Gregory Mankiw1,335 solutions

15th EditionDouglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions

13th EditionDavid R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams1,692 solutions

1st EditionAlexander Holmes, Barbara Illowsky, Susan Dean2,174 solutions