If the simplified version costs $2 million and its probability of success is 75%, whereas the cost of the complicated version is $10million, what is the minimum probability of success for the complicated version that would make the firm indifferent between the two software?
a. 0.3
b. 0.31
c. 0.32
d. 0.33
b
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When the real interest rate increases
A) the supply of loanable funds curve shifts rightward. B) the supply of loanable funds curve shifts leftward. C) there is a movement upward along the supply of loanable funds curve. D) there is a movement downward along the supply of loanable funds curve.
Mac trucks and their dealers would likely have an organizational form of
a. fixed profit sharing franchise contracts b. spot market recontracting c. alliances d. vertical integration
Perfect price discrimination:
A. requires each customer to pay exactly his or her willingness to pay. B. maximizes consumer surplus. C. is not efficient. D. minimizes producer surplus.
If China were to adopt a floating exchange-rate regime, it would:
A. cause the Chinese trade balance to fall. B. cause the U.S. trade balance with China to fall. C. force the U.S. to adopt a fixed exchange rate to maintain the balance of trade. D. de-stabilize the entire world economy.