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2 years ago

Milk and cereal are an example of complementary goods. Which definition best describes this relationship?

1 answer:

8 0

The definition that best describes the relationship is goods related in such a way that an increase in price of one leads to a decrease in the demand for the other.

<h3>What are complementary goods?</h3>

Complementary goods are goods that are used or consumed together. Examples of complementary goods are pen and a notebook, car and gas.

When the price of a good increases, the demand for the complementary good declines. When the price of a good decreases, the demand for the complementary good increases.

When the price of cereal increases, the quantity demanded of cereal declines and so there would less demand for milk. Thus, the demand for milk declines.

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Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff ma

ladessa [460]

Answer:

Caroline to choose right

Antonio chooses left and Caroline chooses right.

Explanation:

Interpreting the payoff matrix:

Both choose right:

Antonio receives 3, Caroline receives 7

Both choose left:

Antonio receives 4, Carolina receives 6

Caroline chooses left, Antonio chooses right:

Antonio receives 7, Caroline receives 5

Caroline chooses right, Antonio chooses left:

Antonio receives 6, Caroline receives 8

As we can see, Antonio only has a better payoff then Caroline if she chooses left and he chooses right. Therefore, the dominant strategy is for Caroline to choose right, this way she will always have the greater payoff.

If Antonio chooses right, the outcome may alter depending on the outcome, therefore it is not a Nash Equilibrium. However, if Antonio chooses left, no matter what Caroline chooses, she will have the greater payoff. At the same time, if Caroline chooses right, Antonio cannot change the outcome by changing his strategy. Therefore, the outcome reflecting the unique Nash equilibrium in this game is as follows: Antonio chooses left and Caroline chooses right.

8 0

4 years ago

You recently purchased a stock that is expected to earn 10 percent in a booming economy, 4 percent in a normal economy, and lose

serious [3.7K]

Answer:

b. 3.70 percent

Explanation:

Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.

Expected rate of return = SUM (probability *return)

Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%

Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%

Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%

Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;

= 1.5% + 2.8% -0.6%

= 3.7%

Therefore, the correct answer is choice B.

4 0

3 years ago

a _____ controls database operations, including storing, retrieving, updating, and deleting data.

Radda [10]

Answer: A data language controls database operations including storing, retrieving, updating and deleting data

Explanation: This is the definition for manipulation

3 0

4 years ago

Read 2 more answers

The sale of an intangible asset for cash is classified in the statement of cash flows as a(n):________

Cloud [144]

The sale of an intangible asset for cash is classified in the statement of cash flows as a(n) Investing activity.

An asset that is not physical in nature is said to be intangible. Intangible assets include goodwill, brand awareness, and intellectual property like patents, trademarks, and copyrights. Contrasting with tangible assets like real estate, automobiles, machinery, and stock are intangible assets.

Furthermore, financial assets that get their value from contractual claims, such as stocks and bonds, are regarded as tangible assets.

An asset that is not physical in nature, such as a patent, brand, trademark, or copyright, is referred to as an intangible asset.

Intangible assets can be produced or purchased by businesses.

An intangible asset may be seen as definite or indefinite, such as a contract or legal arrangement (for example, a brand name).

A company's intangible assets do not appear on the balance sheet and do not have a documented book value.

Learn more about intangible asset here:

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3 0

2 years ago

At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar

Assoli18 [71]

Answer:

The correct answer is 4.33%(approx)

Explanation:

According to the scenario, the given data are as follows:\

Face value = $1,000

Market price = $1,278.41

Coupon Rate = 11%

So Coupon Payment = $110

Years to maturity = 10 years

So, we can calculate the after tax cost of debt by using following method:

After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)

Where, YTM = $\frac{C + \frac{F - P}{T} }{\frac{F + P}{2} }$

So, by putting the following value, we get

YTM = 0.0721

So by putting the value in formula, we get

After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)

= 4.33% (approx)

6 0

3 years ago