1 assume that the high costs of performing cause the, Ask an Expert

Economics

1. Assume that the high costs of performing cause the promisor to breach a contract and pay perfect expectation damages to the promisee. Would the promisee have preferred that the promisor perform?

2. Explain the gain in total payoffs from allowing the promisor to breach and pay expectation damages when performing is efficient.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91238429

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question what is meant by absolute poverty what measures of

Question: What is meant by absolute poverty? What measures of income poverty are favored by development economists? How do income poverty measures differ from the UNDP's Multidimensional poverty index? Why should we be c ...

Question suppose that a firms technology is given by the

Question: Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in both k and l. This is not the ...

Question from the early 1950s through 1973 the japanese

Question: From the early 1950s through 1973, the Japanese economy grew at an average annual rate of almost 10%. It then slowed down to 5% per year from 1973 through 1991, and 1% per year from 1992 through 1998. (A) What ...

Question give an original concise but thorough answer to

Question: Give an original concise but thorough answer to the following questions. a. Compare the shareholder and stakeholder models of corporate governance. Which one seems to predominate today? What implications does t ...

Question inflation and unemploymentsuppose that the

Question: Inflation and unemployment Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantit ...

Question thai savings bank issues 100000 bonds as a

Question: Thai Savings Bank issues 100,000 bonds as a response to the Thai Central Bank's initiatives to increase domestic saving. The bonds have a face value of $48, 917 each, a bond interest rate of 8% per year payable ...

Question optimal input level smokeys garage inc provides

Question: Optimal Input Level. Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two ...

Question in the case of the diamond duplicative mineshafts

Question: In the case of the diamond, duplicative mineshafts were a waste of economic resources, and the law makes them unprofitable. Instead of a diamond, what if a number of independent inventors are racing to be the f ...

Question using exercise sketch the effects in parts a and b

Question: Using Exercise, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price? Exerci ...

Question describe your expectations on finding law from

Question: Describe your expectations on finding law from anywhere in the world by use of the internet. Why is it important to have a uniform method of citation of that law? The response must be typed, single spaced, must ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert