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Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealthy uncle, Michael, decides to give Alexander a car for Christmas. In November, Michael makes a contract with Jackson Auto Sales to purchase a new car for $18,000 to be delivered to Alexander just before the Christmas holidays, in mid-December. The title to the car is to be in Alexander's name. Michael pays the full purchase price, calls Alexander and tells him about the gift, and takes off for a six-month vacation in Europe. Is Alexander an intended third party beneficiary of the contract between Michael and Jackson Auto Sales? Suppose that Jackson Auto Sales never delivers the car to Alexander. Does Alexander have the right to sue Jackson Auto Sales for breaching its contract with Michael?
The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused: Because local banks earn fees for each loan, their role to:
How can price and income elasticity measures be used by businesses to help maximize their sales revenue during an economic downturn?
Provide reasons to explain what government would have to do to keep the unemployment rate at 3 percent."
Illustrate what was impact on supply and demand of labour on one sector of labour market. Elucidate factors that affected labour demand and labour supply in chosen historical example.
What is meant by the term "government-imposed barrier to entry"? Why would a government be willing to impose barriers to entering an industry?
Abdi’s incomes in periods 1 and 2 are $200 and $100 respectively. His preferences for consumption in the two periods are perfect complement. That is, for each dollar he spends in one period, he wants to spend the same amount in other period. What is ..
Moral Hazard. There is a risk neutral principal and a risk averse agent. The agent exerts effort a that results in output x = a + , where ∼ N(0; 1). Find the first best level of effort. Calculate the profit of the principal. Solve for the second-best..
Illustrate what is the total number of wells which maximizes the sum of the profits of both firms.
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the..
Explain whether you believe this will happen. Analyse the promise and challenges associated with this supply source.
q.assume that when an economy has a gdp of 500 consumption is 550. the mpc is .75. investment is 25. begin the problem
The Canadian government administers two programs that affect the market for cigarettes. Health Canada media campaigns and labeling requirements are aimed at making the public aware of the dangers of cigarette smoking. At the same time, Agriculture an..
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