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Your firm has been sued for $3 million by a supplier for breach of contract. Your lawyers believe that there are three possible outcomes if the suit goes to trial. One, which the lawyers term “highly improbably,” is that your supplier will win the lawsuit and be awarded $3 million. Another, which the lawyer term “unlikely,” is that your supplier will win the lawsuit and be awarded $500,000. The third which the lawyers term “likely,” is that your supplier will lose and the lawsuit and be awarded $0. You have to decide whether to try to settle the case. To do so you need to assign probabilities to “highly improbable,” “unlikely” and “likely”. What probabilities correspond to these statements? Going to trial will cost you $100,000 in legal fees. One of your lawyers believes that your supplier will settle for $100,000 (and you will have legal fees of $25,000). Should you settle?
calculate the percentage change from 2001 to 2002 in nominal GDP, real GDP, and the price level. What is the value of the GDP deflator in 2002?
Explain terrorist attacks foster instability and may affect productivity over the short and long term.
Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%. The Sequester is ..
Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
High-frequency trading involves scanning the latest news and stock quotes with high-tech computers and using the information to trade stocks very quickly. Because it is highly automated, it happens a thousand times faster than an eye can blink. Compu..
Describe the transition from short-run to long-run equilibrium in a monopolistically competitive industry.
Can these equations be reliably estimated using OLS? Explain. Solve for the reduced-form equations of this model.
One effective way to get the message about Individual Assistance to eligible tribal members is to:
Calculate the present worth value of 9 annual payments of $800 made at the end of each year knowing that the interest rate is 8%
Which of the following statements about exports and imports is true?
Illustrate what is the probability that a randomly selected hair dryer will be in working condition for more than 60 months.
The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2006 and 2007? What could account for this result?
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