Answer:
(a) If the Bills want to sell tickets to all 8 games by selling eight individual tickets, they have to set the price P = 120 − 10(8) = 120 − 80 = $40. This yields revenue of $40(8) = $320 from each fan.
(b) If the Bills practice second degree price discrimination, they can effectively charge
P = 120 − 10(1) = 120 − 10 = $110 for single games,
P = 110 + 100 + 90 + 80 = $380 = $95/ticket for a 4-game package, and
P = 110 + 100 + 90 + 80 + 70 + 60 + 50 +40 = $600 = $75/ticket for an 8-game package.
Answer:
a. Mortgage fraud
b. Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Explanation:
a.
Fraud in basic terms means a deliberate omission or misrepresentation of facts for the purpose of deceives others. Mortgage fraud there for means a deliberate misrepresentation or omission of facts by a lender to a borrower with malicious financial intent to the borrowers. Any form of mortgage fraud is a criminal offense that is punishable in a court of law, since it usually involves huge amounts of money. An example is the mortgage scam that occurred in Sacramento, Calif where seven people were convicted in a $10 million mortgage scam in early 2019. Most people who fall victim to mortgage scams are not financially literate and there for they easily agree to the loan agreement without necessarily reading and understanding the loan agreement.
Financial literacy can be defined as a proficiency in financial principles like; financial planning, debt management and financial investments with the aim of being financially stable. Financial illiteracy can be defined as lacking financial principles and skills to make sound financial decisions.
In our case, Maria being financially illiterate fell victim to mortgage fraud since she signed a loan agreement that she did not quite understand. The lenders also committed a fraud since they knew that Maria did not understand the agreement but they did not educate her properly to ensure that she knew exactly what she was signing up for. This was a clear act of misrepresentation with the aim of fraud.
b.
Since Maria will not be able to make her payments, she will most likely default on her loan payments. When she defaults on her loan payments, the cost of credit rises. One can however, sue the lender for mortgage fraud. If found guilty in a court of law, they will be punished for fraud.
Answer:
Target cost per unit= $2.64
Explanation:
The target cost is arrived at by subtracting the a desired profit margin from a competitive selling price.
The target cost per unit =
((selling price × qty) - (cost of capital(%) × initial cost))/No of units
=( (3× 1,000,000) - (18%×2,000,000) )/ 1,000,000
= 2.64
Target cost per unit= $2.64
Answer:
c. Monopolistic Competition
Explanation:
Multiple Options <em>"a. Monopoly b. Oligopoly c. Monopolistic competition d. Perfect competition"</em>
Monopolistic Competition is the type of market structure that has many small firms that spend money in order to differentiate their products through advertising. Here, the products are differentiated and the buyers are made aware of these differences through advertising and promotion. These costs represent a significant part of the total cost under monopolistic competition.
Answer:
C. $50,000
Explanation:
The computation of the Mabel's capital account after formation of the partnership account is shown below:
Total contribution by both the partners equals to
= Mabel contribution + Pierre contribution
= $25,000 + $50,000
= $75,000
Mabel contribution = Total contribution × Mabel share ÷ total share
= $75,000 × 4 ÷ 10
= $30,000
And, the land was sold for $50,000
So, Mabel share on the sale of land = $50,000 × 4 ÷ 10 = $20,000
Total amount recorded = $30,000 + $20,000 = $50,000