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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 $7,000. To use Initech’s software, Andrew makes $2,600 in sunk capital investments and spends 70 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 $32 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?
Choose an article in a newspaper or magazine that discusses a United States government policy on goods or services.
students are willing to pay 700 for a computer and 100 for additional software. workers are willing to pay 500 for a
a small business which produces plastic vacuum-suction covers for round household dishes has a monopoly that is
Was this purchase a good deal for Khazad-dum Inc and what would then be the annual cost of Redwood National Park if the interest rate is 10% - What is the opportunity cost of the establishment of the park
discuss the various ways governments can handle externalities such as noise from a local airport or a barking dog or
The most important aspect of the 1983 changes to Medicare that introduced diagnosis-related groups (DRGs) was defining 483 categories of illness for treatment.
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the article must be representative of the economic issues represented by the topics or focus. the article review must
Provides a background commentary on the cost structure and the level of competition experienced by your firm/industry. You must include demand and supply factors, fixed and variable factors/costs, price elasticity and the aims of the firm/industry..
1. suppose the price elasticity of supply for new homes is 0.25 in the short run and 1.05 in the long run.a. if the
America's Water Meter Industry is dominated through 4-companies: Rockwell, Badger, Neptune and Hersey. Rockwell has 35 percent market share, and the remaining share rest.
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