[OPE-L:4145] Re: New Quiz and New New Quiz!

Allin Cottrel (cottrell@wfu.edu)
Tue, 4 Feb 1997 21:09:02 -0800 (PST)

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I'll bite in a small way on Andrew's quiz. I didn't have
time to follow the original discussion, but doing the
calculation myself I agree with Alejandro's 'correct'

r(A) = 0.99(1.10) - 1 = 8.90%
and r(B) = 1.01(1.08) - 1 = 9.08%

But I don't see what this has got to do with "replacement
cost". In Andrew's setup we're not told anything about
changes in the prices of means of production.

Allin Cottrell
Department of Economics
Wake Forest University