Author Question: You own a tract of trees and are deciding whether to harvest them now or next year. If you harvest ... (Read 135 times)

haleyc112

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You own a tract of trees and are deciding whether to harvest them now or next year. If you harvest them now, you can invest the proceeds and get a return of 5 on your investment. What should you do?
 a. Let the trees grow as long as their dollar worth increases by more than 5
  b. Let the trees grow
 c. Cut down the trees, and sell them
 d. Let the trees grow as long as their dollar worth increases by less than 5

Question 2

For direct price discrimination to work, the firm
 a. Must be able to identify members of the low value group
 b. Charge the low-value group lower prices than the rest
 c. Prevent the low-value group from reselling their low priced goods to higher-valued group
  d. All of the above



Zebsrer

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Answer to Question 1

a

Answer to Question 2

d



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