1. Levi Strauss & Co. paid $46,532 for a 110-year-old pair of Levi’s jeans––the oldest known pair of blue jeans––by outbidding several other bidders in an eBay Internet auction. Does this situation best represent producer– producer rivalry, consumer–consumer rivalry, or producer–consumer rivalry? Explain.

2. What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each of five years is the opportunity cost of using funds is 9 percent?