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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 $6,000. To use Initech's software, Andrew makes $3,200 in sunk capital investments and spends 60 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 $24 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?
Machine X will produce cost savings of $6,000 per year for four years; machine Y will produce cost savings of $4,000 per year for six years. If the interest rate is 10% compounded annually, what are the savings for both of these machines in terms of ..
Elucidate what happened to Ikonomia's net foreign assets during 2007. Did it acquire or lose foreign assets during the year.
The unemployment rate measures only the fraction of the labor force searching for work. Sometimes economists are interested in the length of time that unemployed have been out of work. One convenient summary measure is the median duration of unemploy..
A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated demand equation:
List three reasons a company may choose to have annual board self-evaluations to ensure that executives follow all applicable policies. How the New York Stock Exchange guidelines for independence affect corporate governance. What would the benefits a..
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L,K) = 10L0.5k0.5, where L is their number of workers and K is units of..
As utilization review techniques are implemented by MCOs, how has this had an impact on patients being able to access the care they need?
You can conclude that the supply of cell phones is price (indeterminate/ elastic/ inelastic).
What is the current rate of inflation or deflation? Which one do think might be more disruptive for an economy, and why? Describe a policy in the AS-AD model that would reduce inflation from the current level. Do you the U.S. should adopt this policy..
Illustrate what were Enron's problems from an organizational architecture point of view.
If the gasoline price remains low and the high tariff on import car in both China and U.S., what will be the possible impact on the U.S. market price of Tesla
Explain how might spending of Asians on American goods be affected. What about Americans who have invested in these countries.
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