What is the economic interpretation of the result

Assignment Help Macroeconomics
Reference no: EM13221360

(a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the patent. (b) Solve this equation for the price of the idea. (c) What is the economic interpretation of this result?

Reference no: EM13221360

Questions Cloud

Explain the barriers to effective implementation of training : Explain the barriers to effective implementation of training. How can these barriers be alleviated?
Difference between line personnel and staff personnel : What is the difference between line personnel and staff personnel? Why are the two groups so often in conflict? Do you think this would also be true in a virtual organization? How would you minimize the conflict problem?
What is the current share price : The required return on this stock is 12 percent, what is the current share price?
How the tools of reallocation seeding : Consider how the tools of reallocation (seeding, nurturing, pruning, harvesting) could be applied to organizations for which you have worked (even a small business). Give example that other students will understand. (in 160 characters)
What is the economic interpretation of the result : (a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the pat..
Describe how an organization generates and uses its cash : Describe how an organization generates and uses its cash.
Explain the lewis structures that is most important in becl2 : Using formal charges, draw the resonance form from among all the Lewis structures that is most important in describing BeCl2.
Analyze the impact of revenue cycle on cash budget : Analyze the impact of revenue cycle on cash budget and the crucial impact on working capital.
Undertake a high-risk gold mining venture in canada : Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Suppose that charles home improvement when disposal cost

Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.

  Decision making on sunk costs

Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug.  Management now estimates that it will cost $2 million to produce and market this new product.

  Explain what rate do you believe to be more appropriate

the state power department argues that a 5 percent discount factor should be used in evaluating the projects, because that is the government's borrowing rate. the human resources department suggests using a 12 percent rate.

  Cost of production in increasing cost industry

Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to

  Determine consumer confidence index

The Conference Board publishes an index of Consumer Confidence that is good measure of the non price determinant of demand, customer expectations.

  Sources of expenditures in economy

List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.

  Concepts of demand and supply

Mention four key points from the reading assignments that were emphasized in the simulation. Find out how price elasticity of demand affects the decision making of the consumer and of the organization.

  Describe events that might lead to a disequilibrium

Describe events that might lead to a disequilibrium in the market for gasoline.

  Expenditure on education from macro perspective

How might there be increase in total spending on a child's education in response to providing a fixed level of education?

  Find what is the break-even sales price per unit

A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing ..

  Explain any other differences among selling the mobility

Explain any other differences among selling the mobility product in the United States and selling it in your three targeted countries.

  Illustrate what combination of the three products

If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, illustrate what combination of the three products should be purchased in order to maximize utility.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd