Andrew has decided to open an online store that sellshome and garden products. After searching around,he chooses the software company Initech to providethe software for his website since their productrequired the least amount of specialized investmentsfor him to use it. They agreed upon price of $4,000. Touse Initech's software, Andrew makes $1,500 in sunkcapital investments and spends 50 hours learninghow to use Initech's software, which is very differentfrom other software packages. Both Andrew andInitech view Andrew's time as worth $28 per hour andInitech is fully aware of the investments Andrew mustmake to use their product. After Andrew's investmentswere made, Initech came to Andrew and asked formore money. How much do you think they asked for?

The scenario that has been described is a typical illustration of the "hold-up problem," which…

Answered: Andrew has decided to open an online…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns aproperty in Dandenong, Victorian where he and his family are residing. He also runs a homebasedfood catering business, preparing food for local residents and school canteens. Cateringbusiness is well-structured. Alex works 15 days a month and earns a substantial income from thecatering services business. He is travelling from ABC Engineering workshop to his homebasedbusiness by car or sometimes Uber. When he lodged his tax return in July 2019, he has requested a deduction for a substantial amount of travelling expenses between the ABCEngineering workshop and home-based food business.Alex is now seeking your advice. With reference to relevant legislation and case law discusswhether Alex’s travelling expenses between the ABC Engineering workshop and his homebasedcatering business is an allowable deduction.
Canon has manufactured high-quality cameras since it was founded in 1933. SLR-cameras (i.e.not point and shoot cameras) are purchased in two parts: the body and the lenses. Photographerswho want a Canon product must make the upfront investment in the expensive camera body.Canon earns significant profit from the sale of camera bodies and then earns a stream of profitsfrom camera lenses. An owner of a Canon camera body can also purchase lenses from othercompanies that produce Canon-compatible products. Would Canon be better off if there were noother firms that made Canon-compatible lenses?
Micro chapter 8
Assume that the parcels are essentially identical and that the minimum selling price of each is $575,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase Person (Dollars) Andrew 520,000 A-Z Beth 510,000 Lorenzo 750,000 Neha 660,000 Sam 600,000 Teresa 550,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. O Andrew Beth O Lorenzo O Neha O Sam O Teresa Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $535,000. This fourth will nurchase it from the seller for at least the minimum ncice be sold because parcel MacBook Air F12 O O O
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Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs? Assume that the clothes Larry cleans have an average selling price of approximately $25. What is Larry's breakeven for year 1 in units?
you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the money to start your own business, You decided to use the money you saved to buy materials, you als decided to utilize a store you own to home your business. The store you used for your business could have been rented for 8,000 a year. You hired a clerk to help you in the store that will cost you 20,000 per year. The interest you could have earned on the 50,000 you used to buy the materials was 3,000 per year. Futhermore, you decided to manage your own business and you decided to quit your job that was paying 28,000 per year . You paid 8,000 for utility. What is yor explicit cost? Assume that your total sale for the year was 160,000. What is your implicit cost, what is the accounting profit? what is your economic profit?
V1
QUESTION 38 What are the two routes that we use to process information, according to the Elaboration Likelihood Model (ELM)? O central & minor O central & peripheral O fundamental & peripheral O dominant & central QUESTION 39 Which statement best explains the Extended Parallel Processing Model's take-home message? O Fear appeals are most effective when they get the attention of their audience but are not so intense as to induce too high levels of fear. The more intense a fear appeal, the less successful it will be at enacting behavior change. Fear appeals are more successful if they are more intense. O Fear appeals simply do not work in changing behaviors.
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