Answer: $5,900,000
Explanation:
If If the Italian subsidiary's functional currency is the U.S. dollar, the equipment account, in U.S. dollars will be calculated as:
Equipment purchased = € 1000000
Exchange rate = $1.40
Amount in dollars = $1,400,000
Equipment purchased = € 3000000
Exchange rate = $1.50
Amount in dollars = $4,500,000
Therefore, the equipment account, in U.S. dollars will be:
= $1,400,000 + $4,500,000
= $5,900,000
Answer:
1. Please find it attached.
If both of them don't get lawyers they will each make half of the $5 million being $2.5 million a piece.
If one side hires a lawyer and the other doesn't, the side with the lawyer will win 0.9 of $5 million which is $4,500,000. However they would have paid the lawyer $200,000 so that payout drops to $4,500,000. The other would make 0.1 which is $500,000.
If they both get a lawyer they will each get half which is $2,500,000 but they would both have paid their lawyers $200,000 a piece so the net payout would be $2,300,000.
2. The Nash Equilibrium is the alternative that it would not serve either party to deviate from as it serves them both well. The Nash Equilibriums would be If both don't get a lawyer or if both get a lawyer.
3. Yes they would because without lawyers they would make more money as they would not have to pay the $200,000 in fees.
A positive externality is when a good or service is produced and used in a way that benefits a party that is not directly involved in the market transaction.
<h3>
What are the reasons for the Market Failure?</h3>
Externalities, public goods, market regulation, and a lack of knowledge are all possible causes of market failure. Market failures can be resolved through government involvement, such as new legislation, taxes, tariffs, subsidies, or trade restrictions.
The complete question is shown in the file attached below:
Thus, providing free and reduced lunches to low-income students by the government is a situation of positive externality where no directly involved in the market transaction.
Learn more about Market Failure here:
brainly.com/question/13123538
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