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A medical expenses billing firm wishes to hire a software firm to design its software to more efficiently handle its billing. Having the programming redesign is worth $1.5 million to the billing firm. The software firm can write and install new programs for $1.1 million. Because the software is specifically designed for the billing firm, it is worth only $.8 million to other firms.
(a) What price might the parties agree upon for the software? Explain.
(b) Describe a case where the billing firm holds-up the software firm for a lower price. What happens to the profit of each party in this case? Will the software firm go through with deal?
Discuss the long range effects of a stimulus plan as it affects the banking sector.
Give an example of how an organization may use household data and individual data as part of their CRM strategy. How would these data sets affect their marketing strategy?
Tim is offered two gambles. With gamble A, he either gains $2 or loses $1 with a 50 percent probability. With gamble B, he either gains $3 or loses $2 with a 50 percent probability. Tim prefers gamble B to gamble A. What can we conclude?
Hollywood screenwriters negotiate a new agreement with movie producers stipulating that they will receive 10% of the revenue from every video rental of a movie they authored. They have no such agreement for movies shown on on-demand television. When ..
The demand for shoes can be expressed as Q = 100 - 10P., where Q is quantity and P is price.Using the midpoint method, what is the price elasticity of demand when the price of shoes goes from $5 to $6?
A similar helicopter was purchased 4 years ago at a cost of 140,000$. At an interest rate of 7% per year. Illustrate what would be the equivalent value today of that 140,000$ expenditure.
A license to sell another's products or to use another's name in business is called a
Illustrate what way are entrepreneurs also businesses at the helm of the economy but commanded by consumers.
Determine the percentage change in price required to increase the quantity demanded of public transportation by 12%.
Illustrate what is unusual about this market. Give an example of a good or service to might be characterized by this unusual market attribute.
Family F has an income of $1000 per month, and currently spends $400 monthly on food. Assume that the initial price of a unit of food is $1, and initial price of a unit of "all other goods" is also $1. Darw a budget line and indifference curve, given..
For a competitive firm facing a market price above average total cost, the existence of economic profits means that the firm should increase output in the short run even if price is below marginal cost.
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