A defendant believes there is a 40 percent chance that the plaintiff will win $1,000,000 and a 60 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 60 percent chance that they will win $1,000,000 and a 40 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $100,000 and the defendant's
litigation cost is $400,000. Which of the following statements is true?
A) The plaintiff would be will to accept any amount greater than $450,000 to settle.
B) There is no economic incentive for either party to settle.
C) The defendant would be willing to pay up to $900,000 to settle.
D) The defendant would be willing to pay up to $800,000 to settle.
D) The defendant would be willing to pay up to $800,000 to settle.
You might also like to view...
In the above figure, using the slope across an arc, the slope of the curve between points a and b is
A) 1/2. B) -1/2. C) 2. D) -2.
If demand is perfectly elastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in price causes quantity demanded to fall to zero. D) then a 1% increase in price has no effect on quantity demanded.
Teacher absenteeism is a problem facing education in the developing world.
Answer the following statement true (T) or false (F)
Automatic stabilizers have the effect of
A) increasing aggregate demand during a recessionary ga