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vodka [1.7K]
4 years ago
9

Last month Laura saw the value of her stock portfolio rise by $20,000. This month sho saw the value of her portfolio decline by

$20,000.
According to behavioral economics:

A) the positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined.
B) Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses.
C) the positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined.
D) the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.
Business
1 answer:
Rudik [331]4 years ago
6 0

Answer:

The correct option is D: the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.

Explanation:

Behavioral economics suggests that the pain felt when you lose $1000 is more than the joy you experience when you gain $1000 say in a lottery or any exercise without having to do any work from it. Thus this implies that positive utility is less than disutility in the case of Laura as depicted in the example.

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Tampa Tribune's dominant strategy is ____________ (low price, high price, it has no dominant strategy).
Masja [62]

Answer:

Low price

Explanation:

Tampa tribune dominant strategy is low price. If the company keeps its prices high it can get maximum revenue of $88 whereas if the company keeps its prices low it can make maximum revenue of $120. The difference of $32 is gained when the prices are kept and this is dominant strategy for Tampa Tribune.

4 0
3 years ago
You are considering investment that is going to pay $1,500 a month starting 20 years from today for 15 years. If you can earn 8
Margarita [4]

Answer:

  • <u><em>$31,858.57</em></u>

Explanation:

1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.

The formula is:

            PV=C[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]

Where:

  • PV is the present value of the annuity
  • C is the constant pay,emt: $1,500
  • r is the rate of return: 8%/12 = 0.08/12 =
  • t is the number of periods: 15 years × 12 moths/year = 180

Substitute and compute:

            PV=\$ 1,500[\dfrac{1}{(0.08/12)}-\dfrac{1}{(0.08/12)(1+0.08/12)^{180}}]

            PV=\$ 156,960.89

<u>2. Discount to the present year.</u>

You calculate the value of the annuity 20 years from now.

Then, you must discount that value at the same 8% rate to have the price today.

           Price=(Value\text{ }in\text{ }20\text{ }years)/(1+r)^t

Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).

           Price=\$ 156,960.89/(1+0.08/12)^{240}=\$ 31,858.57

5 0
3 years ago
Pop owns 87% of the common stock of Sugar. On December 31, 2017, Pop's Receivables include $296,880 that Pop advanced to Sugar.
Sloan [31]

Answer: $296,880

Explanation:

Pop owns more than 50% of Sugar which means that Sugar is a subsidiary of Pop's. When this happens, trade between the two are not shown in the consolidated financial statement unless the goods traded have been sold off to a third party.

As these goods have not, and are still considered accounts receivable to Sugar, the entire amount will be removed from the consolidated financial statements.

6 0
3 years ago
Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relativelylow prices. To
Nina [5.8K]

Answer:

c. integrated cost leadership/differentiation is the correct answer.

Explanation:

These all are the characteristics of integrated cost leadership/differentiation business-level strategy because integrated cost leadership/differentiation is a strategy at the business level to developing competitive benefits of goods and products that are sold at low prices in the market.

This strategy is adopted by many businesses to attract consumers that help to reach business purposes.

The advantages of an integrated cost leadership/differentiation strategy are:

  • It provides advantages to the team and business.
  • It raises the team market share.
  • It raises the sustainability of the company.
  • It decreases the competition from the business place.

7 0
3 years ago
A $52,000 loan is taken out on a boat with the terms 3% apr for 36 months. the apr is compounded monthly. how much are the month
boyakko [2]

Answer:

Monthly payments=($56890.673/36)=$1,580.296

Explanation:

The formula for calculating the compound interest is given as;

A=P(1+r/n)^nt

where;

A-Amount to be paid after a given period of time

P-Principal amount initially taken=$52,000

r-The annual interest rate=3%=3/100=0.03

n-Number of times the interest is to be compounded per unit time=12

t-3

Replacing;

A=52000(1+0.03/12)^3

A=52000(1.0025)^(3×12)

A=56,890.673

The total amount after 36 months=$56,890.673

Monthly payments=($56890.673/36)=$1,580.296

5 0
3 years ago
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