Online store that sells home and garden products

Assignment Help Business Economics
Reference no: EM13742747

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 $3,000. To use Initech’s software, Andrew makes $1,000 in sunk capital investments and spends 40 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 $25 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?

Reference no: EM13742747

Questions Cloud

What is the market interest rate : The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
Draw the long-run conditional labor demand : A firm’s production function is given by: f(L,k) = L^1/2 , where L is the only input into production and it is variable in both the short and long run. Draw the long-run conditional labor demand in (L,Q) space (in other words, with L on the x-axis)
What is the researchers conclusion : The mean weekly unemployment benefit in the US was in 2003. A researcher in Virginia had a theory that the mean weekly unemployment benefit in Virginia was less than the national average. What is the researcher's conclusion
Offer either product : Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. He determines that, to offer either product, he will have to spend $1,600 in sunk costs to purchase and i..
Online store that sells home and garden products : 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 inves..
Costs exceed the benefits : Do you think the benefits of government regulation exceed the costs? In what areas, if any, do you think the costs exceed the benefits? Cite an example of a company's efforts to circumvent government regulations. Is the use of loopholes ethical?
The black death : The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 million people. Use the production model to explain why wages might have been higher.
Calculate marginal product for following levels of man hours : The production function for Our Production is Q = 25L – 0.05L2 ; where Q is output and L man–hours. (i) What level of man–hours will maximize total output? (ii) Calculate the marginal product for the following levels of man–hours: 25, 50, 100, 150, 2..
Describes the income elasticity of demand : The demand for good x1 is given by: (m/p1) - (p1/p2), where p1=1, p2=1, and m=10.Which of the following accurately describes the INCOME elasticity of demand?

Reviews

Write a Review

Business Economics Questions & Answers

  Elucidate how absolute and comparative advantage were used

Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantage were used in your simulation.

  Order for firm to successfully practice price discrimination

Which of the following is necessary in order for a firm to successfully practice price discrimination?

  Considering the purchase of a security

Suppose that you are considering the purchase of a security that has the following timeline of payments: How much would you be willing to pay for this security if he market interest rate is 6%?

  Monetary policy to focus entirely on targeting the inflation

The operating instruction issued to the European Central Bank is to use monetary policy to focus entirely on targeting the inflation rate. If it follows those rules what would it’s Taylor rule equation look like? Be specific.

  Estimate t-statistics for each variable

Estimate t-statistics for each variable and elucidate Illustrate what inferences can be drawn from m. If R2 of this equation is 0.25, illustrate what inference can be drawn from it.

  Reinert maintains that evidence is that north-south trade

Reinert maintains that the evidence is that North-South trade has a _______ negative impact on the wages of Northern unskilled workers, and that protectionism ___________ a reasonable response.

  Q1 using the formula for beta1 and beta0 show what will

q1. using the formula for beta1 and beta0 show what will happen to the estimator of the slope and intercept in the slr

  Minimum wage is set above the equilibrium market wage

When the minimum wage is set above the equilibrium market wage,

  Elucidate how formal organizations in past century

Elucidate how formal organizations have evolved over the past century. What differences were there in organizations a century ago, compared to today's organizations.

  The three problems of resource allocation are faced by

The three problems of resource allocation are faced by

  Willing to pay for the privilege of moving

In the following game, determine the maximum amount you would be willing to pay for the privilege of moving (a) first, (b) second, or (c) third: There are three players, you and two rivals. The player announcing the largest integer gets a payoff of $..

  Elucidate impossible trinity refers to which idea

The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.

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