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Pepsi [2]
2 years ago
6

Assume that a person consumes two goods, Coke and Snickers. Use a graph to demonstrate how the consumer adjusts his/her optimal

consumption bundle when the price of Coke decreases. Carefully label all curves and axes. What will happen to consumption if Coke is a normal good? What will happen to consumption if Coke is an inferior good?
Business
1 answer:
ki77a [65]2 years ago
6 0

The consumption of coke would would increase if coke is a normal good. The consumption of Coke will fall if the income effect is dominant but would increase if substitution effect dominates even if the good is inferior

In the graph the budget constrait line is given by

P_{s}x + P_{c}y < m

where m is the income

the budget line's u intercept is m/p_{c}

and the x intercept is m/p_{s}

Learn more about consumption behavior here:

brainly.com/question/24438632

#SPJ10

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sdas [7]

Answer:

c.  A range of backgrounds enriches their work

3 0
3 years ago
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The market system is also known as ________, while the command system is also known as ________.
Afina-wow [57]

The market system is also known as capitalism, while the command system is also known as communism. The market system is owned by private ownership, businessman and companies, hence it has capitalism concept. The command system is owned by a community or public.

Hence it can be said that

The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.




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3 years ago
Capital structure decisions include determining: Multiple Choice which one of two projects to accept. how to allocate investment
Serjik [45]

Answer:

The correct answer is how much debt should be assumed to fund a project.

Explanation:

The first thing that must be specified is that a company can be leveraged through debt, contributions from partners or equity, and that the relationship between these two variables will be the capital structure of the company. In addition, one could say that success comes with more certainty to a company that evaluates different possibilities in which these two forms of leverage come into play.

The term optimal structure, in finance, includes the close relationship that exists between the costs and benefits that may be the product of different forms of leverage. One of the points that financial advisors take into account to measure such relationship are the tax advantages that an entrepreneur can acquire when making financial decisions and the decisions he makes regarding the leverage he wishes to obtain.

The following are some of the aspects that are evaluated when looking for an optimal capital structure:

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  • Having a good payment capacity and a good habit of timely payment will be key when requesting a loan, not only for obtaining the credit itself, but because you can obtain proposals from different financial institutions and take advantage of the best rates and benefits.
  • The portfolio purchase options are always a good ally to improve the cash flow of the organization, to take advantage of this it is necessary to evaluate the rate, term and additional conditions that this new financing includes.
  • The company must find that different transactions are not restricted in the contracts it makes with third parties. Having to subject the activity to the clauses imposed by suppliers or allies, can cause you to miss the opportunity to take advantage of other businesses.
  • The agency theory and the moral hazard problem is something that must be taken care of very carefully, since the level of autonomy that the administrator has in the company can jeopardize the offer of value that the investor expects to receive. There have been cases in which the bad decisions of the administration, whether due to errors or fraud, have caused bankruptcy cases or penalties.

In reality, an optimal capital structure is found when investors obtain a significant value offer, that is, that the earnings per share –UPA– are greater, and when financial leverage is used without exceeding market risk levels, but it should also be clarified that all this varies according to the economic conditions of the country and the sector in which the company is located. Finally, it goes without saying that supporting the evaluation of decisions through different financial indicators makes it possible to make a more accurate decision in all cases.

4 0
3 years ago
3 If 90% of the population is right-handed, how many people in a group of 200 would you expect to be right-handed? a 180 b 90 c
arlik [135]

Answer:

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3 years ago
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LekaFEV [45]

Answer:

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<em>The two-step ABC approach involves assigning indirect costs of support departments -e.g., maintenance, quality control- to pools of production departments in the first step. In the second step, activity costs are combined with the indirect costs and overhead rates are added.</em>

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