Suppose that there are two cities that are alike in every way except that one city has significantly better weather than the other city. call the city with good weather good-weather city (gwc) and the other bad-weather city (bwc). assume that the median price of a home in the two cities is originally the same. if the marginal utility of living in gwc is 500 and the marginal utility of living in bwc is 300, to make themselves better off economic theory tells us that:.
a. at least some people will move from bwc to gwc, which will make housing prices rise in gwc and bwc. b. at least some people will move from gwc to bwc, which make housing prices rise in bwc and gwc. c. at least some people will move from bwc to gwc, which will make housing prices rise in gwc and fall in bwc. d. at least some people will move from gwc to bwc, which will make housing prices rise in bwc and fall in gwc.

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?

The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.