In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>
We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions
under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression diseconomies.
Answer:
$7,000
Explanation:
The computation of the incremental (differential) costs of the Western Tour is shown below:
Total cost for eastern tour
= variable cost + fixed cost
= $1,000 + $5,000
= $6,000
And, the total cost for western tour is
= variable cost + fixed cost
= $8,000 + $5,000
= $13,000
So, the different in the cost is
= $13,000 - $6,000
= $7,000
Answer:
19%
Explanation:
The market risk premium is 9%
The risk free rate of return is 3.7%
General motors have a beta of 1.7
Therefore, using the capital asset pticing model the expected return can be calculated as follows
= 3.7% + 1.7×9%
= 3.7% + 15.3%
= 19%
Hence the expected return is 19%
Available Options:
a. an expired contract when Neil said that he had changed his mind.
b. a bilateral contract when Neil said that he would pay for certain work.
c. a unilateral contract as soon as Outdoor began to perform.
d. no contract.
Answer:
Option C. A unilateral contract as soon as Outdoor began to perform.
Explanation:
In a unilateral contract, the acceptance of the contract is only based on the performing of the contract.
The term of the offer includes that the acceptance would be considered if the other party completes the contract which in this case, we can see that the Outdoor Inc has started performing the contract and by the end of Friday, would probably finish its task. If Neil breaches the contract here, then he would be liable to compensate Outdoor as the contract was unilateral.