Perpetuities suppose that today's date is january 1,2019. you have the opportunity to make an investment that will pay you $100 on january 1 of every year, starting in 2020 and continuing forever.

assume the relevant discount rate is 7%.

a. what would you pay now for this investment?

b. suppose the investment's first cash flow comes immediately, on january 1,2019, p5-27 with subsequent cash payments every january 1 thereafter. now how much would you pay? it might be to draw the first few years of a timeline here and compare it to the situation in part a.

c. suppose the investment's first cash flow is 3 years from now, on january 1, 2022. on every january 1 thereafter you will receive $100. how much is this worth to you today, january 1, 2019?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

When you hire an independent contractor you don't have to pay the contractors what

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.