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Soft selling occurs when a buyer is sceptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a company a new accounting system that will reduce costs by 10%. Instead of naming a price, you offer to give them the product in exchange for 50% of their cost savings. Describe the information asymmetry, the adverse selection problem, and why soft selling is a successful signal.
Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.
Koop likes food however dislikes cigarette smoke. The more food he has, the more he would be willing to give up to achieve a given reduction in cigarette smoke. If food and cigarette smoke are the only two goods, draw Koop’s indifference curves
Picabo borrows $1,000. To repay the amount she makes 12 equal monthly payments of $90.30. Determine the effective monthly interest rate.
The demand curve for haircuts at Tanas Hair Design is P = 40 – 0.40Q where Q is the number of cuts per week and P is the price of haircut. At a price of $15, should Tanas raise the price of the haircuts?
Imagine a local government is considering opening a public swimming pool in a residential neighborhood
Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remaining $0.40. The marginal propensity to consume (MPC) for this economy is and the spending multiplier for this economy is
A profit-maximizing firm in a perfectly competitive industry should select the output level at which the difference between the market price and marginal cost is greatest.
Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future. What will happen to interest rates on Treasury securities?Analyz..
What is the total after-tax annual cost of a machine with a first cost of $45,000 and operating and maintenance cost of $0.22 per unit produced? It will be sold for $4,500 at the end of five years. Production is 750 units per day; 250 days per year. ..
Explain the relationship between the Magpie and the Eagle and explain what would be the effect of a 10% increase in the income of the target market have on the demand for the Magpie
use the data below to answer the following questionsinterest ratesupply of loanable fundsmillions investment demanded
consider the following data on canadian
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