Answer:
The expected rate of return on the investment is 10%
Explanation:
Expected rate of return is calculated as a weighted average of all possible payoff. It is calculated by multiplying potential payoffs by the chances of occurring and then adding these results.
In this case
Payoffs= −10 percent Probabilities 0.30 (30%)
Payoffs= 10 percent Probabilities 0.40 (40%)
Payoffs= 30 percent Probabilities 0.30 (30%)
Expected rate of return= -10% x 30% + 10% x 40% + 30% x 30%
Expected rate of return= -0.03+0.04 + 0.09=0.1
Expected rate of return= 10%
Which of the following statements supports multiple sourcing:
- an ongoing long-term contract exists with a preferred supplier.
- supply is plentiful and supply assurance is important.
- there is a patent involved.
- the order is small.
- concerns exist about supplier capacity for future volume.
Answer:
Concerns exist about supplier capacity for future volume.
Explanation:
The multisourcing is a method in which the supplier base is expanded increasing the actual number of suppliers, because the needs of the company are increasing.
Advantages:
-Alternative sources of materials in case of delivery stoppage by a supplier.
-Reduced probability of bottlenecks due to insufficient production capacity to meet peak demand.
- Increased competition mong suppliers leads to better quality, price, delivery, product innovation and buyer´s negociation power.
-More flexibility to reat to unexpected events that could endanger supplier´s capacity.
Disadvantages:
-Reduced efforts by supplier to match buyer´s requirements.
-Higher cost for the purchasing organization (greater number of orders, telephone calls, records, and so on).
Financial markets improve economic welfare because: A. they allow consumers to time their purchases better B. they channel funds from savers to investors C. they eliminate the need for financial intermediaries D. both A and B are correct E. all of the above are correct
Answer:
E
Explanation: All of the above
Financial markets boost economic welfare mainly because they channel funds from savers to investors and allow consumers to time their purchases better. So, both options A and B are correct.
The most correct answer is D: both A and B.
Explanation:Financial markets improve economic welfare primarily due to reason B: they channel funds from savers to investors.
This feature enables consumers and businesses to invest their savings in businesses that may generate wealth and contribute to economic growth.
However, option A: they allow consumers to time their purchases better, is also a valid point and contributes to economic welfare by providing consumers with flexibility.
Therefore, the most correct answer is D: both A and B are correct.
Option C, the elimination of financial intermediaries, is not typically a result of financial markets, making option E incorrect.
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Excessive alcohol consumption can lead to liver failure, as well as deterioration of other organs. Suppose the government has opened several public clinics that try to help alcoholics reduce their alcoholic consumption. Now the government is trying to decide how to fund these clinics. One suggestion is to raise the funds for the public clinics with a liquor tax. This tax follows:
A. The benefits principle of tax fairness.
B. Neither the ability-to-pay nor the benefits principle.
C. The ability-to-pay principle.
Answer:
The answer is A. The benefits principle of tax fairness.
Explanation:
Financial markets a. facilitate the flow of funds from surplus to deficit units. b. facilitate the flow of funds from deficit to surplus units. c. are markets in which financial assets such as stocks and bonds can be purchased and sold. e. none of these choices are true.
Answer: Option C
Explanation: In simple words, financial markets refers to the market of stock, bonds and equities like securities in which the participant trade for the low transaction cost and easy availability of sellers and purchasers. Stock market is an example of financial markets.
The flow of funds from surplus to deficit is done by other financial institutions such as banks.
Hence the correct option is C.
Final answer:
Financial markets facilitate the flow of funds from surplus units to deficit units and include the trade of financial assets like stocks and bonds, playing a vital role in economic growth and investment.
Explanation:
Financial markets serve as a bridge connecting entities with excess funds, also known as surplus units, to those in need of funds or deficit units. This process primarily facilitates the flow of funds from surplus to deficit units, enabling savers to invest and earn a return, and allowing borrowers to access funds for various purposes like investment and growth. These markets include avenues for trading financial assets such as stocks, bonds, bank loans, and other types of financial investments.
Through these mechanisms, financial markets support entrepreneurship, investment, saving mobilization, and the overall national growth by ensuring an efficient allocation of resources based on supply and demand.
Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price than that quoted by competitors is facing financial problems. Since Justin's promotion depends on his achieving the sales target, he cannot decide whether he should inform his client about the lower prices its competitors are paying. Justin is facing a situation known as ________.
A. effectuation
B. social loafing
C. cognitive resonance
D. ethical dilemma.
Answer:
The correct answer is option D.
Explanation:
An ethical dilemma can be defined as a situation in the decision-making process in which whatever decision is chosen some ethical principle is being compromised.
Out of two moral choices, neither one is unambiguously preferable or acceptable. The situation becomes complex as choosing one alternative will lead to transgression of another.
Final answer:
Justin is facing an ethical dilemma, which is a conflict between two moral principles that makes it difficult to decide on the right action. This concept extends to complex business situations like potential company mergers, where ethical considerations must be balanced against practical business concerns.
Explanation:
Justin is facing a situation known as an ethical dilemma. This occurs when an individual is required to choose between two conflicting moral principles, making it difficult to decide what is the right course of action. In business, ethical dilemmas often arise when personal goals, such as meeting sales targets, conflict with the interests of clients or the overall ethical standards of the industry.
In a similar scenario, as a manager knowing about a possible company merger, the ethical obligation to inform your employees versus the risk of creating uncertainty and potentially derailing the merger presents a significant ethical dilemma. Managing ethical dilemmas requires a careful balance between transparency and discretion, and often involves considering the well-being of individuals affected by the decision, the potential consequences for the company, and the principles of honesty and integrity.
It is crucial to address ethical dilemmas responsibly because failing to manage them appropriately can lead to a variety of negative outcomes both for the individuals involved and for the organization as a whole, as noted in academic research and observed in various business contexts.
Gabby and Gus Malloy recently got preapproved on a loan for their first house purchase. They are speculating on how much they should bid on their number one choice—a small, three-bedroom bungalow near a major college town. Which of the following indicators may be an important factor in whether they are able to successfully put in a low bid?
Answer:
The indicators may be an important factor will be the unemployment rate in the area
Explanation:
The federal tax rate in the that area, may no different that in other area and it can be pay if you have job, the other indicator could be is the producer price index but it can't tell you the economy as well just the productions and finally the CMI consume marginal index tell you more about life style in the zone, so that's why the indicator that is higgher influence is the unemployment rate because that determinate how many people around can pay and be able to grow economy way in the area, so t you can get return on investment
If a business is losing money on the goods it is producing, this indicates that
A. the business is producing the goods at the lowest possible cost.
B. the resources used to produce the goods are too expensive and need to be subsidized in order to be used productively.
C. the resources would be used more productively producing other things.
D. the consumer values the goods highly relative to costs
If a business is losing money on the goods it's producing, it likely indicates that the resources would be used more productively in different areas. This means the goods aren't providing enough value to surpass their production costs.
Explanation:If a business is losing money on the goods it is producing, it can mean a few things. However, most typically this suggests that the resources would be used more productively producing other things - option C. This is because even if the resources used to produce the goods are expensive, if the value generated from selling the goods doesn't surpass the costs of production, then the use of these resources may be better allocated elsewhere. This can involve producing different goods, or changing the methods of production. This scenario also indicates that the pricing or cost strategies need to be reconsidered.
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Which of the following people is likely to benefit from inflation? A. A person with low income B. A person who has a large savings account C. A person who owes $200,000 on a loan D. A retired person on a fixed income
Answer: C. A person who owes $200,000
One of the diversity challenges managers have to deal with is that, in addition to differences in the employee groups that make up their staff, people are much more mobile in today's world. If an American manager, James, were to accept an assignment in Latin America, for example, he would need to be particularly aware of the _____________ of the workforce.
Answer:
cultural identity
Explanation:
According to my research on studies conducted by various sociologists, I can say that based on the information provided within the question he would need to be aware of the cultural identity of the workforce. In other words he would need to be accepted by the people in that workforce as well as James accepting them.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Retail giant Target has an internal creative department that handles the design of its weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing materials. This is an example of an in-house agency. True or false?
Answer:
True
Explanation:
In House agency: The agency in the work is done in a house, not outside the housing agency. The outsourcing of the work is also not considered in the in house agency, as the work is done at the outside of the house, not at the inside of the house.
In the given situation, the internal creative department handles its work internally, So it is an example of an in house agency
Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Identify the principle or assumption that best matches the situation:
a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet.
b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000.
c. The Apartment Exchange reports its financial statements in U.S. dollars.
d. Michael expects the Apartment Exchange to remain in operations for the foreseeable future.
Answer:
a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet - the economic entity assumption.
b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000 - the cost principle.
c. The Apartment Exchange reports its financial statements in U.S. dollars - the monetary unit assumption.
d. Michael expects the Apartment Exchange to remain in operations for the foreseeable future - the going concern assumption.
The principle or assumption that best matches the situation is that Michael's personal assets are not recorded on the Apartment Exchange's balance sheet
Explanation:The principle or assumption that best matches the situation described is option a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet.
According to the information provided, Michael's personal home and personal bank account are not included in the assets of the Apartment Exchange on its balance sheet. Only the cash, furniture, and accounts payable of the business are considered. The value of Michael's personal assets is not relevant to the financial position of the business.
A cartoon in the text shows two people watching television. On the screen are the words "Economic growth indicators are up, led by car repairs, divorce costs, open-heart surgeries, and toxic waste cleanups." The cartoon illustrates the:
a) Difficulty in measuring social welfare.
b) Difference between GDP and national income.
c) Problem of measuring the difference in wealth between the United States and other nations.
d) Difference between GDP and NDP.
Final answer:
The cartoon illustrates the difficulty in measuring social welfare by showing economic growth indicators that may not reflect an improvement in well-being. Relying on GDP alone can be misleading when assessing social welfare. The correct option is a.
Explanation:
The cartoon in the text illustrates the difficulty in measuring social welfare. The statement on the television screen highlights economic growth indicators that may not necessarily reflect an improvement in social welfare. Car repairs, divorce costs, open-heart surgeries, and toxic waste cleanups, while contributing to GDP, do not directly measure the well-being of individuals or the overall quality of life.
The cartoon demonstrates that relying on GDP alone can be misleading when assessing social welfare. It implies that economic growth, as measured by GDP, may not always translate into an improved standard of living or overall societal well-being. Other factors like health, education, and environmental quality, which are not accounted for in GDP, should also be considered when evaluating social welfare.
In a poll, 1,003 men in a country were asked whether they favor or oppose the use of "federal tax dollars to fund medical research using stem cells obtained from human embryos." Among the respondents, 48% said that they were in favor. Describe the statistical study.
Answer:
The population in the given statistical problem is all the men in the country and the sample selected for the given study is 1003 men. Out of these men, 48% of the men were in favor of this change and 52% of the men were against the use of federal tax dollars for funding medical research study. Hence, the response given by the men were taken as a base for this study.
A copy machine cost $ 36 comma 000$36,000 when new and has accumulated depreciation of $ 34 comma 000$34,000. Suppose Sun Graphics and Designs CenterSun Graphics and Designs Center junks this machine, receiving nothing in return. What is the result of the disposal transaction?
Answer:
Loss of $2,000
Explanation:
As provided,
Cost of machine in both cases = $36,000
Accumulated depreciation = $34,000
Therefore, carrying value = Cost - Accumulated depreciation = $36,000 - $34,000 = $2,000
Now, since this asset is discarded as junk for $0, there will be a loss on such transaction to be recorded = $2,000
This loss shall be reported in income statement as Debit.
Further, after this transaction machine value in books shall be $0.
Journal Entry for this will be:
Loss on sale of Machinery A/c Dr. $2,000
Accumulated Depreciation A/c Dr. $34,000
To Machinery A/c $36,000
Malory is the new marketing manager for the footwear division of her company and is currently planning next season’s product lines. She needs to gain access to data about recent purchasing patterns in the industry but has a limited budget and time. Which type of data would be the best choice for Malory to use in this situation?
Answer:
Secondary data
Explanation:
secondary data is information which has been collected in the past by someone else. For example, researching the internet, newspaper articles and company reports.
Pat invested x dollars in a fund that paid 8 percent annual interest, compounded annually. Which of the following represents the value, in dollars, of Pat's investment plus interest at the end of 5 years?
Answer:
Pat would receive within 5 years $1.47 for each dollar invested.
Explanation:
Compounded interest is when the final capital is calculated with the interest that is paid at the end of each period over the capital plus the interest earned in the prior period.
CF=1(1+0.08)↑5
Louise McIntyre’s monthly gross income is $3,500. Her employer withholds $820 in federal, state, and local income taxes and $370 in Social Security taxes per month. Louise contributes $220 each month for her IRA. Her monthly credit payments for VISA and MasterCard are $125 and $120, respectively. Her monthly payment on an automobile loan is $315.
a. What is Louise's debt payments-to-income ratio? (Enter your answer as a percent rounded to 2 decimal places.)
b. Is Louise living within her means?
Answer:
1. 26.79%
2. No
Explanation:
a. The computation of debt payment to income ratio is shown below:
The income would be equal to
= Monthly gross income - federal, state, and local income tax - social security taxes - IRA
= $3,500 - $820 - $370 - $220
= $2,090
And, the debt payments equal to
= Visa card + master card + automobile loan
= $125 + $120 + $315
= $560
So, the debt payment to income ratio would equal to
= $560 ÷ $2,090
= 26.79%
b. we conclude that debt percentage is more than the monthly payments.
Final answer:
Louise's debt payments-to-income ratio is 16.00%. After taxation and contributions, she has $2,090 net income and $1,530 disposable income post debt payments. If this covers her monthly living costs, she is living within her means.
Explanation:
To calculate Louise's debt payments-to-income ratio, we need to sum up her monthly debt payments and divide by her gross monthly income, then convert it to a percentage.
Louise's monthly debt payments include:
Credit card payments: $125 for VISA + $120 for MasterCard = $245Automobile loan payment: $315Total monthly debt payments = $245 + $315 = $560
Gross monthly income = $3,500
To find the debt payments-to-income ratio:
(Debt Payments / Gross Income) × 100 = ($560 / $3,500) × 100 = 16%
Louise's debt payments-to-income ratio is 16.00%.
Regarding whether Louise is living within her means, after removing federal, state, local income, and Social Security taxes, as well as her IRA contribution:
Total monthly deductions = $820 + $370 + $220 = $1,410
Net income = Gross income - Total monthly deductions = $3,500 - $1,410 = $2,090
Louise has a net income of $2,090. After making her debt payments:
Disposable income = Net income - Debt payments = $2,090 - $560 = $1,530
Louise has $1,530 left for other living expenses. If this covers her monthly living costs, then she is living within her means.
Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service revenue of $ 250 comma 000 and had the following expenses: salaries, $ 190 comma 000; rent, $ 80,000; and utilities, $ 28,000. At year-end Sunny's cash balance was down to $ 15 comma 000. How much net income (or net loss) did Sunny experience for the year?
Answer:
Net Loss experienced during the year = ($48,000)
Explanation:
Provided information we have,
Revenue for the year = $250,000
Costs incurred during the year
Salaries = $190,000
Rent = $80,000
Utilities = $28,000
Total cash cost = $298,000
Thus, net income or (loss) = Total Revenue for the year - Total cost for the year
Thus, Net Income or (Loss) = $250,000 - $298,000 = ($48,000)
Therefore, Net Loss experienced during the year = ($48,000)
__________data, or the facts and figures that have already been collected about the Coffee Collective prior to the research at hand, would include information relating to budgets, previous marketing activities, sales and customer communications.
A. Situation analysis
B. Primary
C. Secondary
D. Response rate
E. Qualitative researc
Final answer:
Secondary data is the term used to describe existing facts and figures that have already been collected by someone else, such as budgets, previous marketing activities, sales, and customer communications. It is an important source of information for research purposes.
Explanation:
The correct answer is C. Secondary data is the term used to describe the facts and figures that have already been collected by someone else, prior to the current research. It includes information such as budgets, previous marketing activities, sales, and customer communications. Examples of secondary data sources include government databases, organizational records, and data collected by other researchers. Secondary data analysis is a cost-effective way to gather information when primary data collection is too expensive or impractical.
Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication. Because these employees work on several books simultaneously, the number of people the company hires will not go up and down with the quantity of books the company publishes during any particular year. The salaries and benefits of people in these job categories will be included in A. fixed cost but not variable cost and total cost. B. marginal cost and total cost but not fixed cost. C. fixed cost and marginal cost but not variable cost. D. fixed cost and total cost but not variable cost.
Answer:
The correct answer is option D.
Explanation:
Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication.
These employees work on several books simultaneously so a change in quantity demanded of books published in a year.
Since the number of people employed is fixed and does not change with the quantity of output. The cost incurred on these workers will be fixed cost. So the salaries and benefits of people in these people will be included in fixed costs and total costs. But since it does not change with change in the output it will not be included in variable costs.
The provision of accounting information for internal users is known as
a. accounting.
b. accounting for planning and control.
c. information provision. d. financial accounting.
e. managerial accounting.
Answer: Option (E) is correct.
Explanation:
Managerial accounting aka cost accounting is known as the procedure of analyzing, measuring, determining and communicating data and information to the top hierarchy of the organization. Managerial accounting collects information which is targeted and aimed towards helping managers within an organization to make useful decisions.
Managerial accounting provides accounting information for internal users, aiding in business decision-making. Unlike financial accounting, it is tailored to meet the needs of internal stakeholders.
Explanation:The provision of accounting information for internal users is referred to as e. managerial accounting. Managerial accounting is used by managers and employees within an organization to make informed business decisions. It's different from financial accounting, which is primarily for external stakeholders, such as investors or regulators. Examples of managerial accounting information may include budgets, forecasts, and internal performance reports.
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A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?
Answer:
Depreciation for year 2 = $18,667
Explanation:
Double declining depreciation rate = Depreciation rate as per straight line method [tex]\times[/tex] 2
Straight line method depreciation = [tex]\frac{Cost\ of\ asset\ -\ Salvage\ value}{life\ in\ years}[/tex]
= [tex]\frac{75,000 - 5,000}{4} = 17,500[/tex]
Depreciation rate = 17,500/75,000 = 23.33%
Double declining depreciation rate = 23.33 [tex]\times[/tex] 2 = 46.67%
Thus, depreciation in year 2 as per double declining method =
Value at end of year 1 = $75,000 - 46.66667% = $40,000
Depreciation for year 2 = $40,000 [tex]\times[/tex] 46.66667% = $18,667
The double-declining balance method of depreciation initially calculates straight-line depreciation, which is then doubled and applied to the asset's cost yielding the first year's depreciation. The same process is applied on the residual value for the next year, giving us $20,000 as the second-year depreciation for the given machine.
Explanation:The subject of this question is
depreciation
using the double-declining balance method. In this Business scenario, the initial value of the machine is $75,000, with a residual value of $5,000 and an estimated life of 4 years or 18,000 hours. The first step in the double-declining balance method is to calculate the straight-line depreciation rate. In this case, straight line depreciation would be (cost of the machine - residual value) / Life of the machine. $75,000 - $5000 = $70,000 / 4 years gives us $17,500 per year. This tells us that if we were using the standard approach the machine would depreciate by $17,500 each year. However, we are using the double-declining balance method, which doubles the straight-line depreciation rate. So for the first year, the depreciation would be $17,500 * 2 = $35,000. Now subtract that from the initial cost for a new book value at the start of second year : $75,000 - $35,000 = $40,000. Apply the same double-rate (2* straight-line depreciation) to the new book value. $40,000 * 50% (which is double the straight-line rate of 25%) gives us $20,000, which is the depreciation amount for the second year.
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A certain business produced x rakes each month form November through February and shipped x/2 rakes at the beginning of each month from March through October. The business paid no storage costs for the rakes from November through February, but it paid storage costs of $0.10 per rake each month from March through October for the rakes that had not been shipped. In terms of x, what was the total storage cost, in dollars, that the business paid for the rakes for the 12 months form November through October?
A. 0.40x
B. 1.20x
C. 1.40x
D. 1.60x
E. 3.20x
Answer:
C. 1.40x
Explanation:
1. Production:
November through February: x rakes/month* 4 months = 4x rakes.
2. Shipping and storage costs
March= 4x (initial stock) - x/2 (shipped) = 3.5 x (in stock) * 0.1$ = $0.35
April = 3.5x (stock at end of March) - x/2 (shipped) = 3x*0.1$ = $0.30
May = 3x (stock at the end of April) - x/2 (shipped) = 2.5x*0.1$ = $0.25
June= 2.5x (stock at the end of May) - x/2 (shipped) = 2x (in stock) * $0.1 = 0.2$
July = 2x (stock at end of June) - x/2 (shipped) = 1.5x*0.1$ = $0.15
August = 1.5x (stock at the end of July) - x/2 (shipped) = 1x*0.1$ = $0.1
Sept= 1x (stock at the end of August.) - x/2 (shipped) = 0.5 x (in stock) * $0.1 = $0.05
October = 0.5x (stock at end of sept.) - x/2 (shipped) = 0*$0.1 = $0
Total storage cost= $0.35x+$0.30x+$0.25x+$0.20x+$0.15x+$0.10x+$0.05x+$0x
Total storage cost = $1.40X
A production possibilities frontier: A. shows how unlimited wants exceed the limited resources available to fulfill those wants. B. shows the market for a good or service. C. shows the maximum attainable combinations of two goods that may be produced with available resources. D. shows the act of buying and selling. E. shows how participants in the market are linked.
Answer:
The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.
Explanation:
The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.
Answer:
c
Explanation:
A grocery store is trying to find a new vendor for carrots. Its three criteria are: 1. Freshness, 2. Lot Size, and 3. Cost, with factor weights of .6, .1, and .3, respectively. What would a vendor with ratings of 6, 8, and 10 in the three respective categories score as a weighted total?
Answer:
7.4
Explanation:
Let
Wi= weighted factor
Xi = ratings
Then,
Weighted total ratings = Sum of (Xi*Wi) / Sum of Wi
We know that the weights W1 =0.6, W2= 0.1, W3 = 0.3
Ratings X1 = 6 , X2 = 8, X3 = 10
Total of weights = 0.6+0.1+0.3 = 1
Total ratings = 0.6*6 + 0.1*8 + 0.3*10 = 3.6 + 0.8 + 3 = 7.4
Rating Score = Total ratings/ total weights
= 7.4/ 1
= 7.4
Equilibrium levels of income and interest rates are ______ related in the goods and services market, and equilibrium levels of income and interest rates are ______ related in the market for real money balances.
a. positively; positively
b. positively; negatively
c. negatively; negatively
d. negatively; positively
Answer:
D) negativity, positively
Explanation:
Equilibrium levels of income and interest rates are negatively related in the goods and services market because an equilibrium in interest and income will mean less goods and services and equilibrium levels of income and interest rates are positively related in the market for real money balances because an equilibrium in income and interest will lead to an increase in real money balances
How did Ben Casnocha decide on a price for his product?
Answer:
We figured out how much the problem was costing the customer — and priced the product around that number.
Explanation:
i was writing a paper and had this in my notes
Answer:
Ben Casnocha is a young entrepreneur and venture capital investor who has written 2 books (The Alliance, and The Start-Up of You). You could say he hit the jackpot with his Comcate software that provides local governments with CRM solutions.
On his management book, The Alliance, he explains how he priced his software and it was fairly simple: he first calculated how much money his customer's could save with his software and then priced his product below that amount.
This logic is very simple and can be used by everyone, e.g. my customer has a problem that is costing them $10, and I can sell them a solution for $8.
Deadweight loss occurs when
a) producer surplus is greater than consumer surplus.
b) consumer surplus is reduced.
c) an inferior good is consumed.
d) the maximum level of total welfare is not achieved.
Answer:
d) the maximum level of total welfare is not achieved.
Explanation:
When the economic efficiency bears a loss, it is termed to be a deadweight loss. This condition occurs in the situation when the free market equilibrium is not able to be achieved. It occurs in the economy when the supply and the demand for the goods and services start to fall from being in the state of equilibrium. The resources allocated experiences a deficiency, thereby causing a deadweight loss.
Deadweight loss occurs when the maximum level of total welfare, which can be achieved through optimal production and consumption in a market, is not achieved due to disruptions to the equilibrium of supply and demand. It's not specifically about consumer or producer surplus being greater, or about the consumption of an inferior good.
Explanation:Deadweight loss occurs when d) the maximum level of total welfare is not achieved. In essence, deadweight loss refers to the inefficiency in the market. It happens when the supply and demand equilibrium is disturbed, causing less than optimal production and consumption. Essentially, it represents the missed potential for total welfare in a market which can be caused by factors such as taxes, subsidies, price ceilings or floors, etc.
For instance, when a tax is imposed on a good, it increases the price paid by buyers (reducing the consumer surplus) and reduces the price received by sellers (reducing the producer surplus). This meddling with the free market equilibrium results in lesser units of the good being traded than would be in a free market, leading to a deadweight loss.
So, it's not necessarily about one surplus being greater than another (options a, b), or about the consumption of an inferior good (option c).
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A corporate manager chafes under red tape and bureaucratic regulations until finally deciding to start a separate business. The apparent reward he seeks is the satisfaction of working with people. a satisfying way of life. community service. independence.
Answer:
The correct answer is Independence.
Explanation:
The Accountant must have and demonstrate absolute mental independence of judgment with respect to any interest that could be considered incompatible with the principles of integrity and objectivity; if you are a member of a company of which you are a partner or shareholder, you will not express any opinion on financial statements in a way unless it and he are independent of said company, that is, there is no possibility of a conflict of interest that may Limit your independence.
It is understood that a person enjoys mental independence when their judgments are made based on the objective facts they examine. There is no mental independence when the opinion or judgment is influenced by subjective considerations, independent of the objective elements of the case.
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,000 per month for the next two years, or you can have $5,700 per month for the next two years, along with a $31,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly.
Requirement 1:
If you take the first option, $7,000 per month for two years, what is the present value? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Requirement 2:
What is the present value of the second option? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer:
Requirement 1: The present value of the first option is P≈$87,852.50.
Requirement 2: The present value of the second option is P≈$102,537.04.
Explanation:
Making use of the present value concept is a useful way to compare cases where money is to be received in the future. Generally, the higher the present value, the better.
In this case, we are given two different salary arrangements, each one with an annuity involved; that is, in each arrangement we get an equal amount of money every month.Since there is an annuity involved, we can make use of the next formula to calculate the present value of each case:[tex]P=A[\frac{(1+i)^{n}-1 }{i(1+i)^{n} } ][/tex]
Where P: Present value (what we are required to calculate),
A: Annuity (the amount of money to be received every month; that is, $7,000 for the first option, and $5,700 for the second option),
i: Interest rate to be used (6%, or 0.06), and
n: Number of periods of time that will pass (in both cases, we are talking about 2 years, but since the 6% interest rate is compounded monthly, we have to consider the months involved, as shown below).
[tex]n=2 years*12\frac{months}{year}\\n=24months[/tex]
Now we can proceed to determine the present value of each case by substituting all the known values that we have.
Requirement 1: If you take the first option, $7,000 per month for two years, what is the present value?
[tex]P=A[\frac{(1+i)^{n}-1 }{i(1+i)^{n} } ]\\\\P=7000*[\frac{(1+0.06)^{24}-1}{0.06*(1+0.06)^{24}} ]\\\\P=7000*[\frac{(1.06)^{24}-1}{0.06*(1.06)^{24}} ]\\\\P=7000*[\frac{4.04893-1}{0.06*4.04893} ]\\\\P=7000*[\frac{3.04893}{0.24294} ]\\\\P=7000*[12.55036]\\\\P=87852.50269[/tex]
So, the present value of the first option, where we get $7,000 every month for 2 years, is P≈$87,852.50.
Requirement 2: What is the present value of the second option?
In this case, we get $5,700 per month for two years, plus a $31,000 bonus today. Since we get this bonus exactly today, it adds directly into the present value, so we should now calculate the present value of the annuity (just like we did in the first case), and add it to the $31,000 bonus.[tex]P=31000+A[\frac{(1+i)^{n}-1 }{i(1+i)^{n} } ]\\\\P=31000+5700*[\frac{(1+0.06)^{24}-1}{0.06*(1+0.06)^{24}} ]\\\\P=31000+5700*[\frac{3.04893}{0.24294} ]\\\\P=31000+5700*[12.55036]\\\\P=31000+71537.03791\\\\P=102537.03791[/tex]
So, the present value of the second option, where we get $5,700 every month for 2 years, along with a $31,000 bonus, is P≈$102,537.04.
It goes without saying that, given our calculations, the second option is much better than the first one.