Both a defendant and plaintiff believe there is a 30 percent chance that the plaintiff will win $150,000 and a 70 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $30,000 and the defendant's litigation cost is $40,000, the defendant would be willing to pay any amount up to ________ to settle and the plaintiff would be willing to
accept any amount greater than ________ to settle.
A) $80,000; $20,000
B) $20,000; $80,000
C) $85,000; $15,000
D) $15,000; $85,000
C) $85,000; $15,000
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If Southwest Airlines borrows $20 million from a bank to finance the renovation of their corporate offices, this is an example of
A) a stock market transaction. B) a bond market transaction. C) direct finance. D) indirect finance.
Cyclical unemployment refers to unemployment resulting from:
a. a mismatch of skills. b. being in the wrong geographical location. c. the time and monetary cost of finding the best job. d. a recession.
What does Temporary Aid to Needy Families (TANF) require of recipients?
What will be an ideal response?
Assume that several firms compete in the market for cellular phones and that the price elasticity for this industry is equal to 0.75. Based on this information, would you advise a firm in this industry to increase its price? If so, what is the percentage loss in total sales this firm should expect to experience?
A. Definitely no. Each 1 percent increase in price would result in 7.5 percent reduction in total sales, negatively affecting total revenues. B. Definitely yes. Total revenues would increase as sales would decrease by only .75 percent for each 1 percent increase in price. C. Not enough information is provided to make a sound decision. For the same reason, it is not possible to predict what the loss in sales for one firm would be. D. Definitely no. Each 1 percent increase in price would result in 7.5 percent reduction in total sales, affecting total revenues positively.