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A medical expenses billing firm wishes to hire a software firm to design its software to more efficiently handle its billing. Having the programming redesign is worth $1.5 million to the billing firm. The software firm can write and install new programs for $1.1 million. Because the software is specifically designed for the billing firm, it is worth only $.8 million to other firms.
(a) What price might the parties agree upon for the software? Explain.
(b) Describe a case where the billing firm holds-up the software firm for a lower price. What happens to the profit of each party in this case? Will the software firm go through with deal?
What technology available to produce your product suddenly improves. You should note whether the scenario indicates a shift of the curve or movement along the curve. You are a supplier of widgets.
Consider a supply and demand model of the wholesale gasoline market. If a tropical storm forces some refineries to temporarily withdraw from the market, what curve shifts and in which direction?
q1. corporate profitability declined by 20 from 2008 to 2009. what performance would you use to trigger executive
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Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought.
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
Their costs and benefits are presented in the table below. Each project has a useful life of 50 years and the MARR is 12% per year. Which of the projects, if any, should be selected?
We would like to estimate the need for physicians in a country. What approach would you follow to estimate the need? Briefly describe the method you are proposing (describe one method only) and discuss some potential limitations of the approach.
What are coral reefs Status of coral reefs Threats to coral reefs Uses of coral reefs what is a Coral Reef. Fleshy sac topped with ring of tentacles around central mouth opening what is a Coral Reef.
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Draw the budget constraint for the individual with the composite good on the y-axis and food on the x-a..
International data show a positive correlation (i.e, relationship) between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth? Through what mechanism could strong economic growth l..
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