Answer:
Consider the following explanation
Explanation:
Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.
The answer is false. Hope it helps! :)
Answer:
True
Explanation:
The production function is getting flatter since the marginal productivity of the 13th worker is lower than the marginal productivity of the 12th worker, e.g. the 12th worker produced 10 units per hour, the 13th worker only produces 9 units per hour.
The total cost curve will get steeper because the total cost of producing more goods will increase due to the lower marginal productivity of the 13th worker, e.g. since both workers earn $10 per hour, the units produced by the 12th worker will have a direct labor cost of $1 per unit, while the units produced by the 13th worker will have a direct labor cost of $1.11 per unit.
Answer:
The present Value of Annual Gain for two years made from unwrapping the original swap agreement is $20.00
Explanation:
From the given information;
The annual gain from swap agreements = $61.50 - $51.25
The annual gain from swap agreements = $10.25
Annual rate for the first year = 1% = 0.01
Annual rate for the second year = 2% = 0.02
However the present gain for the first year will be;
= 10.14851485
The present gain for the second year will be;
= 9.851980008
The present Value of Annual Gain for two years is:
= 10.14851485 + 9.851980008
= 20.00049486
≅ $ 20.00
The present Value of Annual Gain for two years is $20.00