Suppose that Mr. X has a useless tree growing in his yard that has become too large, and he must cut it down within the next four years. Cutting down the tree requires effort, and he would like to wait and cut down the tree later. However, each year that he delays, the tree gets bigger and requires even more effort to cut down. Specifically, suppose that the effort cost to cut down the tree in year 7 is c(7), where c(1) = 24, c(2) = 29, c(3) = 36, and c(4) = 48. Suppose that Mr. X is an exponential discounter with discount factor 6, and that the only utility consequence of cutting down the tree is the disutility of effort experienced when the tree is cut. (a) From a year-l perspective, as a function of 8, when is Mr. X's preferred time to cut down the tree? (b) Suppose Mr. X does not cut down the tree in year 1. From a year-2 perspective, as a function of 8, when is Mr. X's preferred time to cut down the tree? Is there any d for which Mr. X's year-2 preferences differ from his year-1 preferences?
Answers: 3
Business, 21.06.2019 16:10, cgarnett5408
Aldrich and co. sold goods to donovan on credit. the amount owed grew steadily, and finally aldrich refused to sell any more to donovan unless donovan signed a promissory note for the amount due. donovan did not want to but signed the note because he had no money and needed more goods. when aldrich brought an action to enforce the note, donovan claimed that the note was not binding because it had been obtained by economic duress. was he correct? [aldrich & co. v. donovan, 778 p.2d 397 (mont.)]
Answers: 1
Business, 22.06.2019 02:00, mckinley2006
What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond
Answers: 1
Business, 22.06.2019 09:40, MileenaKitana
Wilson center is a private not-for-profit voluntary health and welfare entity. during 2017, it received unrestricted pledges of $638,000, 65 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). officials estimate that 14 percent of all pledges will be uncollectible. a. how much should wilson center report as contribution revenue for 2017? b. in addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to wilson center at no charge. without these donated services, the organization would have hired an additional staff person. how should wilson center record the contributed service?
Answers: 2
Suppose that Mr. X has a useless tree growing in his yard that has become too large, and he must cut...
Geography, 03.02.2021 18:40
Arts, 03.02.2021 18:40
Arts, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
English, 03.02.2021 18:40