A defendant believes there is a 70 percent chance that the plaintiff will win $800,000 and a 30 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 90 percent chance that they will win $800,000 and a 10 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $300,000 and the defendant's litigation
cost is $200,000. The defendant would be willing to pay any amount up to ________ to settle.
A) $760,000
B) $700,000
C) $420,000
D) $500,000
A) $760,000
Economics
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Which of the following adjust to bring aggregate supply and demand into balance?
a. the price level and real output b. the real rate of interest and the money supply c. government expenditures and taxes d. the saving rate and net exports
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