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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?
q.consolidated salt company sells table salt to both retail grocery chains and commercial users e.g. bakeries snack
What is the evidence of wrongdoing here How does business use politics here Is this government failure Is this market failure Who benefits and how Who loses What is the role of the media
While grading a final exam, an economics professor discovers that two students have virtually identical answers. Illustrate which outcome do you expect.
q1. assume that mr. browns mpsmpc. if he makes an extra 1000 this year and this increase in his income does not change
The investors in exercise 2 are surprised by firm's performance in year 5. Instead of being $20 million, the firm's profits are $40 million. What happens to firm B's stock price in year 6 and 7?
Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.
What is average variable cost? Is the firm profitable? Should it stay in business? Should it stay in business in the short run? Should it stay in business in the long run? Show your work and explain answer.
Choose at least two (2) risk implementation considerations you need to decide (in advance) within a project. Provide a rationale for your response.
If firm A produces 100 record albums and 100 video cassettes, how might firm A be made better off by shifting its output mix. Explain your reasonings clearly.
q. the article states growth in the export sector has been one factor contributing to overall growth. how would we
If you were desinging such an amendment, do you think it would be better to require that the actual budget deficit be kept at zero each year, or should the aim be only to keep the structural deficit at zero? Discuss.
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
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