Answer and Explanation:
Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.
Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders
Answer: A. put all terms of the partnership into writing in a partnership agreement.
Explanation:
The most important terms in a partnership agreement is ensuring that all terms are noted down and binded legally, this is to help partners know when need to do something and don't feel cheated or be cheated by someone or something. Avoidance of reaching out to terms noted down will further make things complex either when the business is growing or when there is need to shutdown or during operations.
Answer:
$16,500
Explanation:
She invested = $12,000
Total money spent to acquire the policy = ($16,500 + $5000) = $21,500
Total money invested on policy = $21500 + $12000
Total money invested on policy = $33500
Money that sara got after angela died = $50,000
Therefore, the taxable proceed will be = $50,000 - $33,500 = $16,500
Answer: John will increase his satisfaction by purchasing the candy bar
Explanation: marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service. It is also the additional satisfaction or utility that consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decreases as consumption of the good or service increases. A marginal benefit applies to any additional unit purchased for consumption after the first unit has been acquired.
For example, if a person purchases a burger for $10, it is assumed the consumer is obtaining at least $10 worth of perceived value from the item.
Answer:
The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23
Explanation:
Provided data;
90000 value portfolio with expected returns of 11% and beta of 1.20
($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.
The new expected portfolio return =
rp = 0.1 × 13% + 0.9 × 11%
rp = 0.1 × 0.13 + 0.9 × 0.11
= 11.20%
The new expected portfolio beta =
bp = 0.1 × 1.50 + 0.9 × 1.20
bp = 1.23
