You are the owner of a rare bottle of wine valued at $332. There are no costs associated with storing or selling the wine. Next year you expect the wine to increase in value to $350. If the interest rate is 10 percent
A) you should sell the wine today.
B) you should keep the wine for at least one more year.
C) you are indifferent between selling the wine today and holding it for one more year.
D) more information is needed to answer this question.
A
Economics
You might also like to view...
Marginal social benefit equals
A) marginal external benefit. B) marginal private benefit. C) marginal private benefit minus marginal external benefit. D) marginal private benefit plus marginal external benefit. E) marginal external benefit minus marginal private benefit.
Economics
By 1860,
(a) less than one-third of Southern farmers owned slaves. (b) most of the workers on Northern farmers were hired laborers. (c) immigrants supplied a significant amount of labor to Northern and Southern farmers. (d) all of the above.
Economics