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Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. They agreed upon price of $5,000. To use Initech’s software, Andrew makes $2,000 in sunk capital investments and spends 60 hours learning how to use Initech’s software, which is very different from other software packages. Both Andrew and Initech view Andrew’s time as worth $27 per hour and Initech is fully aware of the investments Andrew must make to use their product. After Andrew’s investments were made, Initech came to Andrew and asked for more money. How much do you think they asked for?
Suppose today a 10 percent bond sells at par. Two years from now, the required market return on the same bond is 8 percent. What is the coupon rate on the bond then?
Local ordinances govern issues such as which of these?
The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
Which of the following goals of economic policymakers is generally false? They try to keep unemployment low to avoid leaving productive resources idle. They find low inflation desirable because it helps to keep unemployment under control. They want t..
q1. suppose there is a sudden change in the preferences for chocolates. however the price of production rises due to a
the student has decided to save money in equal monthly amounts for 48 months and then pay cash. If the student earns 0.75% per month interest on the money she saves, how much money is the monthly savings?
The political stability of countries has an impact on the foreign exchange market. When a country's import spending exceeds the value of its exports, the country is experiencing a:
Uncertainty and Insurance: You own a house and have a utility function equal to in which x1 represents your total wealth in a state of nature in which your house is still standing, and x2 represents your total wealth in a state of nature in which you..
What is value of marginal propensity to consume (MPC) in this model Marginal propensity to save (MPS).
What's the effective annual return Friendly's earns on this lending business? If you were brave enough to ask, what APR would Friendly's say you were paying?
Drawing on current business publications, find an article in which either fiscal or monetary policy makers were describing their goals of maintaining stable prices, full employment, and adequate economic growth over time. Which goal was the most impo..
Business has only one social responsibility-to make profits (as long as it stays within the legal and moral rules of the game establised by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by..
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