Author Question: Suppose a buyer hires an interpreter who charges 5 to negotiate a deal with a seller. The buyer's ... (Read 85 times)

scienceeasy

  • Hero Member
  • *****
  • Posts: 565
Suppose a buyer hires an interpreter who charges 5 to negotiate a deal with a seller. The buyer's valuation of the good is 50 and the seller's opportunity cost is 35 . If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?
 a. 42
  b. 40
  c. 44
  d. 38

Question 2

The law of diminishing return does not apply to a firm in the long run because in this phase:
 a. all the factors of production are fixed.
  b. there are no fixed factors of production.
  c. there are some fixed and some variable factors of production.
  d. the producer is required to produce a fixed level of output.
  e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.



chevyboi1976

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

B

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

For a complete list of videos, visit our video library