Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
Answer:
Difficult entry, Mutual interdependence, Market is control by a few large firms.
Explanation:
An Oligopolistic market very few organisations control a particular market share. Likewise, when another organisation attempts to enter the market, there are obstructions set up by the current organisations. Similarly, if one organisation changes or alter a commodity, it affects all other firms and organisations. So there is mutual interdependence in the oligopolistic market. There is high mutual interdependence because firms produce identical or the same goods and services.
Answer:
Substitutes
Explanation:
The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.
Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.
Answer:
Option C is correct.
<u> When the game will be repeated infinitely.</u>
Explanation:
The collaborations will undoubtedly work in a repeated prisoners' dilemma game when the game will be rehashed infinitely.
A rehashed detainees problem games alludes to a game technique wherein the game is either rehashed finitely or infinitely..
The collaborations choose to work with boundlessly rehashed games by participating and embracing a socially ideal methodology.
The principle point of cooperations is to expand their settlements in future and this is conceivable just through the selection of the interminably rehashed game system in which they need to co-work endlessly with different firms.
As per this gaming procedure, if any of the Cooperation or firm digresses from the agreeable system, they will get decreased settlements in future.
