Economics homework

MEQA Assignment 2 You recently started working for OmiCon, a commercial real estate developer, and have been given a position working directly for Sophie Reynolds, OmiCon’s CEO. When you meet Sophie for the first time, she gives you a project she wants you to complete by the end of the week. Sophie explains that OmiCon is thinking about leasing a parcel of land to build a shopping center. OmiCon would own and operate the shopping center and generate revenue by renting space to retailers. Sophie would like you do some work on the project. Specifically, she would like you to complete the following tasks: 1. Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space. 2. Determine the most OmiCon should be willing to pay to lease the land for the expected life of the project. 3. Calculate the profit under each possible demand curve with the optimum size of the shopping center. 4. Determine if it is worth hiring a local consultant, Pete Berry, to do some additional market research that would provide a better estimate of the demand for retail space. 5. Write a short report summarizing the results of your analysis and any recommendations. Sophie tells you that Bob Bilkington, a former OmiCon employee, did some preliminary work on the project, but left the organization before wrapping things up. Sophie says that you should have complete confidence in any work Bob did on the project and that you should use his findings and assumptions as a starting point for your analysis. In fact, Sophie has reviewed Bob’s notes and quickly summarizes the key information she thinks you’ll need for your analysis. Specifically, she tells you that ? Bob thought the shopping center would take one year to build and would last 20 years. He estimated that it would cost $100 per square meter to build and that the annual operations and maintenance costs would be $1 per square meter of floor space. ? Bob thought that...