Both a defendant and plaintiff believe there is an 80 percent chance that the plaintiff will win $500,000 and a 20 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $150,000 and the defendant's litigation cost is $200,000, the defendant would be willing to pay any amount up to ________ to settle.
A) $250,000
B) $200,000
C) $600,000
D) $550,000
C) $600,000
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Refer to Table 2-8. What is Wilma's opportunity cost of making a statue?
A) 1/3 of a bench B) 6/7 of a statue C) 1/2 of a bench D) 3 benches
Suppose that technological progress increases the productivity of teachers. Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will
a. rise, and the equilibrium quantity of teachers employed will fall. b. rise, and the equilibrium quantity of teachers employed will rise. c. fall, and the equilibrium quantity of teachers employed will fall. d. fall, and the equilibrium quantity of teachers employed will rise.
How is the quantity theory of money different from the quantity equation and why must the quantity equation always be true?
What will be an ideal response?
The value of marginal product (VMP) of an input such as labor is the
A) additional output produced by the last unit of an input. B) total revenue divided by the units of the input employed. C) extra revenue gained by selling one more unit of output. D) extra revenue gained by employing one more unit of the input.