Answer:
b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.
Explanation:
The probability of discovered oil = 0.25 (25%)
Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit
= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750
Developing = Probability of finding the oil × Future Profits - Cost of Well
= 0.25 × $7,500,000 - $750,000 = $1,125,000
= $1.125 million
Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.
Answer:
Option c. Decreasing returns to the ideas stock but increasing returns overall
Explanation:
In economics, the challenge will be to increase the production of the goods and render more services. However, the return to the flattening curve means that there would be a change in the trends. Thus, in this case, there would be a variability in the supply and demand chain. Such tends to happen with drastic changes in the trends.
The best and most correct answer among the choices provided by the question is the fourth choice. <span>"Shareholder wealth" in a firm is represented by </span><span>the market price per share of the firm's common stock. </span><span>I hope my answer has come to your help. God bless and have a nice day ahead!</span>
Answer:
<u>expansionary; will be equal to</u>
Explanation:
<em>Remember</em>, monetary policies are basically divided into:
- expansionary monetary policy, and
- contractionary monetary policy.
Indeed, as the name implies, the expansionary monetary policy is meant to in a sense boost up economic growth in terms of reducing interest rates thereby theoretically increasing spending and also leading to an increase in the money supply. When there is an increase in the money supply, this thus leads to an increased inflation rate, which would be expected if workers and firms have rational expectations.
Answer:
Letter E is correct. <em>Their share of the cost is hig</em>h.
Explanation:
Price sensitivity is characterized by consumer behavior in relation to the price of a product or service.
The degree of price sensitivity can be measured using the price elasticity of demand, which is the study of the percentage change in the amount of demand for a good or service divided by the percentage change in price.
Some variables may affect consumer behavior, price sensitivity may be higher when there are many substitute products and lower when the consumer values a higher quality good and <u>when its profitability is higher compared to the total cost of the product.
</u>
