Answer:
The answer options for this question are as follows
A) moral hazard
B) adverse selection
C) costly state verification
D) agency
The correct answer is A) moral hazard
Explanation:
Moral hazard corresponds to opportunistic behavior where one of the parties seeks their own benefit at the expense of the other being unable to observe or be informed of their behavior.
Moral hazard appears in markets with asymmetric information. One of the parties has private information about their conduct while others cannot obtain this information.
Given this asymmetry, individuals take greater risks, make less efforts or take advantage of certain circumstances because they know that the cost of their actions will fall on other people.
Answer:
Part (a)
Buying of land would be smart thought if the net present estimation of advantage is at any rate equal to or more prominent than the present estimation of cost of land.
Net present estimation of land = 
= $1,825,592.54
The expense of land is anyway $2,000,000. The net present expense of land is more noteworthy than the advantages. Subsequently it isn't a good thought to purchase the land.
Part (b)
The maximum sum that ought to be paid ought to be equivalent to the net present estimation of advantages, for example $1,825,592.54.
Part (c)
If the entertainment benefits increment by 3 years then the net present estimation of advantages for a long time would be:
= ![\frac{100,000 * [ 1 - (1.03/1.05)^{50} ] }{(0.05-0.03)}](https://tex.z-dn.net/?f=%5Cfrac%7B100%2C000%20%2A%20%5B%201%20-%20%281.03%2F1.05%29%5E%7B50%7D%20%20%5D%20%7D%7B%280.05-0.03%29%7D)
=$3088535.28
The land should be purchased since the present estimation of advantages is more prominent than cost.
The negotiation process involves several steps such as preparing for negotiation; knowing your walk-away point; and working towards a common goal. The statement is True.
<h3>What is negotiation?</h3>
Negotiation is a process used to resolve issues that exist between two parties by agreeing on a common point with mutual consent and making compromises between the parties.
The process of negotiation involves preparing for negotiation by understanding the factors leading to an argument. It involves listening to both parties to make a mutual understanding and to achive a common goal.
Therefore, the statement is True.
Learn more about Negotiation, here:
brainly.com/question/9312091
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"Your question is incomplete, probably the complete question/missing part is:"
(T or F)
The negotiation process involves several steps such as: preparing for negotiation; knowing your walk-away point; and working towards a common goal.
Answer:
Unit cost of material is $4
Explanation:
Cost of production is the cost incurred during production of goods and services. Production cost is made up of the direct cost which include cost of material, and indirect cost such as labour and factory overhead. Total cost are then allocated to units produced to get the total amount spent per unit of the product.
However we were asked to calculate the unit cost of material, which is the direct input used in this production process.
Unit cost of material= Cost of material/number of units
Unit cost of material= 20,000/5,000
Unit cost of material = $4
Answer:
Explanation:
Retention rate = 75%
Contribution to profit and overhead = 35%
Purchase laptop every 2,5 years (1/2.5=0.4 per year)
Average cost = $750
Value of loyal customer =
= Price * Purchase frequency * Gross margin * 1/(1-Retention rate)
Value of loyal customer = 750*0.4*0.35*1/(1-0.75) = 750*0.4*0.35*1/0.25 = $420
