Question: 3. A capitalist owns a machine that will last for two more years. The good the machine helps produce will yield revenue of $50.000 and

3. A capitalist owns a machine that will last for two more years. The good the machine helps produce will yield revenue of $50.000 and $40,000 with costs of $35,000 and $39,000. It will have no scrap value. The capitalist has been offered $15,000 to sell the machine. If the capitalist's rate of time preference is 5 percent, will the capitalist sell the machine? Does the answer change if the capitalist's rate of time preference is 10 percent?

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The quality of the argumentation

The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.