What is the economic interpretation of the result

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Reference no: EM13221360

(a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the patent. (b) Solve this equation for the price of the idea. (c) What is the economic interpretation of this result?

Reference no: EM13221360

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