Answer:
The correct answer is letter "B": The firm be able to charge the low-value customers a lower price than the higher-value customers.
Explanation:
Price discrimination is the practice by which producers charge different prices to different consumers based on factors such as<em> age, income or location</em> to mention a few. This differentiation in prices is always justified by producers with one of those factors otherwise the approach would be considered illegal.
Direct price discrimination<em> is carried out when the firm charges lower prices to an unfavored sector of the market keeping the regular price in sectors where income is higher.</em>
Answer:
Option D
To me, I think option D is the most preferred answer
The following that most strongly implied by this information is that at the current level of production, the firm is making a profit of $3000. Jake and Mathew will most likely agree on The firm should increase production from the current level. Mathew is assuming that no new firms enter the market in the short run.
Answer:
AAA = (8000)
STOCK BALANCE = 0
AEP = 2000
Explanation:
-----------------AAA-------- stock basis---------AEP
Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000
Distribution (2000) - - - - (2000) - - - - - (4000)
Balance - - - 0 - - - - - - - 8000 - - - - - - 2000
LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0
Balance - -2000 - - - - - 10,000 - - - - - - 2,000
Loss - - - (10000) - - - - (10000) - - - - - - - 0
Ending - - (8000) - - - - - 0 - - - - - - - - - 2000
ENDING BALANCE :
AAA = (8000)
STOCK BASIS = 0
AEP = 2000
Beg. bal = beginning balance
LTCG = Long term capital gain
Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.