1. Levi Strauss & Co. paid 546.532 for a 110-year-old pair of Levi's jeans—the oldest knoun pair of blue jeans—by outbidding several other bidders in an cBay 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 if the opportunity cost of using funds is 9 percent?