An Invoice for $12,000 Has Terms 1/20,n/45

question 45

Multiple Choice

An invoice for $12,000 has terms 1/20,n/45.If you take out a loan to take advantage of the discount and the bank uses ordinary interest (i.e.the banker's rule) ,what is the maximum rate of simple interest that you would be willing to pay?

• A)8.08%
• B)8.19%
• C)14.55%
• D)14.75%

Apply the concept of Nash equilibrium and dominant strategies to various game scenarios.

Understand the implications of first-mover and second-mover advantages.

Analyze the effectiveness of threats and their credibility in game theory.

Understand the impact of strategic moves on the equilibria of games.

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Definitions:

Cost Curves

A graphical representation used in economics to show the total cost of producing a given quantity of output.

Oligopolistic Industry

A market structure characterized by a small number of large firms dominating the industry, with significant barriers to entry for new competitors.

Maximize Joint Profits

A strategy where entities collaborate to enhance their combined earnings rather than competing against each other.

Incentive to Cheat

The motivation or factor that encourages individuals or entities to act dishonestly or unethically for personal gain.