Answer:
1 year rate 2 year from now = 12% (Approx)
Explanation:
Given:
1-year rate = 8%
2-year rate = 9%
3-year rate = 10%
Computation:
According to Pure Expectations Hypothesis,
(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)
(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)
1.331 = 1.1881 (1 + 1 year rate 2 year from now)
(1 + 1 year rate 2 year from now) = 1.12
1 year rate 2 year from now = 0.12
1 year rate 2 year from now = 12% (Approx)
The money left over the cost of making a product or providing a service
The correct answer is the second option (there is a difference in performance). The Equal Pay Act of 1963 was passed to ensure that employers would not discriminate based on gender. This means that employers cannot pay men more than women, just for being men (and vice versa). Essentially, the law ensures equal pay for equal work. However, it also notes that equal pay does not apply if the payment system correlates to the quantity of work. Since the women in this example are producing more output, then it is legal for them to be paid more for their larger quantity (and not simply because they are women).
Answer:
1. b. Competitive
2. a. It should provide superior value in terms of lower price, and/or convenience, and accessibility
Explanation:
The competitive pricing is marketing strategy in which a product price is set after careful consideration of competitor's price. The pricing of a product is determined based on competitor's product price. The Carmax product moisture plus should follow competitive pricing strategy as the market is not in the mature stage.
The Carmax should offer lower price and create high value to the consumers. Carmax can gain competitive advantage by economies of scale and some unique features.
