Suppose Dr. Splendor is the only instructor of Magical Economics employed by the College of Necromancy (CON) at Hogwarts University. CON agreed to pay him a total of G5,000 (5,000 galleons) to create an online version of this course, to be delivered in August 2015. Further, they gave him an advance of G2,000 in April to complete the outline for the course and several course modules by the end of July. On July 31 he turned in a brief outline for the course and 2 modules. CoN claims that it fails to live up to the CoN's expectation that he create a detailed outline and 4 modules. Given the ambiguity over the word "several," and what constitutes a "detailed" outline, Splendor disagrees. Might Splendor have exploited rent and/or quasi-rent? Explain.
Suppose Dr. Splendor is the only instructor of Magical Economics employed by the College of Necromancy (CON) at Hogwarts University. CON agreed to pay him a total of G5,000 (5,000 galleons) to create an online version of this course, to be delivered in August 2015. Further, they gave him an advance of G2,000 in April to complete the outline for the course and several course modules by the end of July. On July 31 he turned in a brief outline for the course and 2 modules. CoN claims that it fails to live up to the CoN's expectation that he create a detailed outline and 4 modules. Given the ambiguity over the word "several," and what constitutes a "detailed" outline, Splendor disagrees. Might Splendor have exploited rent and/or quasi-rent? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education