Jill and Frank decided to take a long weekend in New York. City Hotel has a special getaway weekend for $79.95. The price is per person per night, based on double occupancy. The hotel has a minimum two-night stay. For this price, Jill and Frank will receive $50 credit toward their dinners at City’s Skylight Restaurant. Also included in the package is a $3.99 credit per person toward breakfast for two each morning. Since Jill and Frank do not own a car, they plan to rent a car. The car rental agency charges $19.95 a day with an additional charge of $.22 a mile and $1.19 per gallon of gas used. The gas tank holds 24 gallons. From the following facts, calculate the total expenses of Jill and Frank (round all answers to nearest hundredth or cent as appropriate). Assume no taxes. Car rental (2 days): Dinner cost at Skylight $ 182.12 Beginning odometer reading 4,820 Breakfast for two: Ending odometer reading 4,940 Morning No. 1 24.17 Beginning gas tank: 3/4 full Morning No. 2 26.88 Gas tank on return: 1/2 full Hotel room $ 79.95 Tank holds 24 gallons

Consider a two-firm industry. firm 1 (the incumbent) chooses a level of output q1. firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. the demand for the product is p = 100 - q, where q is the total output sold by the two firms which equals q1 +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm 1 chooses q1 first and firm 2 observes q1 and chooses its q2. find the profits of the two firms-? 1 and ? 2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of q1 would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of q1? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f > 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q1, denoted by q1b, as a function of f. next, derive the expression for firm 1

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?