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QUESTION 1 Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting prot of 2 00m

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QUESTION 1

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Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting prot of 2 00m from doing so. It has also the option to begin exporting to India, Brasil or South Africa, but it has the production capacity for only one of the four possible markets (including Sweden). The expected annual accounting prot for the above three markets is 250m, 2 00m, and 150m respectively. On the basis of this information, the economic prot of exporting to Sweden is equal to: a. -50m. b. 0m. c. 50m. d. 2 00m. Samsung sells its 16in monitors to Apple for 85 per screen. Its estimated cost is 49 and Apple is willing to pay up to 99. The value creation (VC) and consumer surplus (CS) in this case are equal to: a. VC=50 , CS=14. b. Impossible to say. c. VC=36 , CS=14. d. VC=99 , CS=36. The market for social-media-monitoring software exhibits very strong network externalities: The rm with the highest market share doubles its market share every year. It took Rogue Inc 20 years to obtain 100% market share and become a monopoly. How may years did it take for Rogue Inc to obtain 25% market share? a. 5. b. 18. c. 15. d. 7. In order to increase the creativity of its staff, Google invested in a highly unique headquarters building, brimming with indoor leisure activities and places for staff to socialize. What type of asset-specic investment is this? a. Site-specic investment. b. All other options are correct. c. Physical asset investment. d. Human asset investment

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