Answer:
a) Determine which type of cars will be sold at the efficient allocation.
All cars would be sold in a Pareto efficient allocation.
In a Pareto efficient market, resources are all allocated in the most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.
b) Determine which type of cars will be sold at the market equilibrium.
Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.
Explanation:
the most a buyer would be willing to pay for a used car is ($1,800 x 40%) + ($1,600 x 30%) + ($1,400 x 30%) = $720 + $480 + $420 = $1,620
A) there are no close substitutes
Explanation:
A monopoly results when there is a single provider of a particular good or service. Since they’re the only company providing that good or service, the consumer must conduct their business with that specific provider. For example, imagine that Walmart is the only store you can buy food from. Walmart would dominate the entire supply market as it would be the only store from which you can buy your food.
<span>If a project has a positive net present value the expected rate of return for the project is greater than one. NPV stands for net present value PV. NPV is a formula used to find revenue minus cost within a firm. Using the net present value firms can figure out the value of revenues and how their cash flow is doing. </span>
Answer:
$3.16
Explanation:
Since in the question it is given that the company wants to maintain a constant dividend.
So, the maximum amount you are willing to pay for one share is
= $0.60 ÷ 19%
= $3.16
We simply divide the dividend for 3 year by the earning rate of return so that the maximum price could come
All the other information which is given is not relevant. Hence, ignored it
Answer:
<h2>The marketing research process involves six steps:</h2><h3>1: problem definition, 2: development of an approach to the problem, 3: research design formulation, 4: data collection, 5: data preparation and analysis, and 6: report preparation and presentation.</h3>
Explanation:
Hope it helps!
<em>#</em><em>C</em><em>a</em><em>r</em><em>r</em><em>y</em><em>O</em><em>n</em><em>L</em><em>e</em><em>a</em><em>r</em><em>n</em><em>i</em><em>n</em><em>g</em>