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Third Party Beneficiary: Alexander has been accepted as a freshman at a college 200 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 was 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 6-week vacation in Europe. Is Alexander an intended third party beneficiary of the contract between Michael and Jackson Auto Sales? Suppose that Jackson Auto never delivers the car to Alexander. Does Alexander have the right to sue Jackson Auto Sales for breaching the contract with Michael? Explain.
A study the seasonal demand and supply, explain what happened to cause the oil prices to fall to consumer demand in early 2015. Draw demand and supply curves to explain what happened.
Model of an Airlines Market American Airlines and United Airlines compete for customers on flights between Chicago and Los Angeles. The total number of passengers flown by these two firms (per quarter), q, is the sum of the number of passengers flown..
Elucidate how long must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
You are asked “Should we buy a house or not?” and given the following set of rules to answer it: IF inflation is low, THEN interest rates are low, ELSE interest rates are high. Prepare an inference tree for the backward-chaining case.
Can policymakers stabilize both the price level and real GDP simultaneously in response to a short-lived but sudden rise in oil prices? Explain briefly.
Consider a consumer who has utility function u(x, y) = min{2x, 3y} where x, y are amounts of goods X, Y consumed respectively. If there is an inflation which doubled the prices px, py as well as the wealth w. Consumer preference is still the same as ..
Assume that neither country experiences population growth nor technological progress as well as that 5 percent of capital depreciates each year
A monopolistic competitor wishing to maximize profit will select profit will select a quantity where: If a firm is producing a quantity where marginal revenue exceeds marginal cost, the firm should ____existing levels of production, in order to____. ..
Delta Dawn’s Bakery is considering purchasing a new van to deliver bread. The van will cost $15,000. Two-thirds ($10,000) of this cost will be borrowed. The loan is to be repaid with four equal annual payments (first payment at t = 1) based on an int..
In a monopolistically competitive market, the government applies a specific tax of $1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the market rise or fall? Please explain.
Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per unit. The company’s monthly fixed expense is $32,250. Using the equation method, determine for the unit sales that are required to earn a target pr..
A bank account pays 12% nominal interest with quarterly compounding. A series of deposits started with a deposit of $5,000 on January 1, 2012. Deposits in the series will occur each six months. The last deposit in the series will occur on July 1, 201..
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