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garik1379 [7]
3 years ago
9

Steven buys a pair of scissors instead of getting a haircut. He believes the scissors will last for a long time, while the hairc

ut will only last a few weeks. In this case, scissors is a good, while the haircut is a service. Why is a haircut considered a service here?
Business
1 answer:
KonstantinChe [14]3 years ago
7 0
A haircut is a service because someone is assisting you in something that you can do yourself unless you are disabled (but it still makes it a service). Plus, when you get it done by a barber it's a professional haircut. I hope this helps!
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Lohn Corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. Afterward, the c
Vesnalui [34]

Answer:

Current share price=$1.49

Explanation:

The current share price of the stock can be expressed as;

Current share price=D1/(k-g)

where;

D1=Expected annual dividend per share

k=required rate of return

g=growth rate of dividend

In our case;

D1=Average dividend per share=(20+16+15+8.5)/4

D1=59.5/4=$14.875

k=15%

g=5%

Replacing;

Current share price=14.875/(15-5)

Current share price=14.875/10

Current share price=$1.49

7 0
3 years ago
"Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 millio
Bingel [31]

Answer: $500,000

Explanation:

An Interest Rate Cap is a Derivative Financial Instrument that works by paying the buyer for every year that the interest rate ceiling is exceeded.

Using the scenario above this is how it's works,

There is an Interest Rate Ceiling of 11%.

Any year that index which is this case is the London Interbank Official Rate (LIBOR) exceeds the 11%, the seller will pay the buyer the difference between the LIBOR and the Interest Rate Ceiling.

The Notional Principal is the amount on which the interest is based.

That means that in Year 1 with a LIBOR of 9 percent, the seller does not pay.

Second year LIBOR is 12 percent, the seller will pay 1% (12% - 11%)

Third year LIBOR is 13 percent, the seller will pay 2% (13% - 11%)

Lizard National Bank had to pay 2% of the notional Principal as a fee.

The amount that Lizard Receives from the seller is therefore,

= Total Received - Fees

= (1% + 2% - 2%) * 50,000,000

= 1% * 50,000,000

= $500,000

The total payments received by Lizard, including the initial fee, are $500,000.

4 0
3 years ago
The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket and is used by an average of 513 riders a d
ki77a [65]

Answer:

Price elasticity of demand = Change in Quantity/ Change in Price

Using midpoint formula;

Change in Quantity ;

= \frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{363 - 513}{\frac{513 + 363}{2} }\\\\= -0.342

Change in Price;

= \frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{0.99 - 0.88}{\frac{0.99 + 0.88}{2} }\\\\= 0.118

Price elasticity of demand = -0.342/0.118

= -2.90

Demand is elastic, so decreasing ticket prices will increase revenue.

When the elasticity is larger than 1 it means that a 1% change in price will change demand by more than 1%. In this case, a a decrease of price by 1% will bring 2.9% increase in customers.

6 0
3 years ago
Suppose that you are hired by a producer of wooden pallets to determine what sort of competition the firm faces. Due to a accide
gulaghasi [49]

During this week of low production, the price for pallets does not change at all. Given this observation this firm likely faces Oligopoly. Below is further explanation on Oligopoly.

<h3>What is Oligopoly?</h3>

An oligopoly is a market featured by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power.

Therefore, the correct answer is Oligopoly.

learn more about Oligopoly: brainly.com/question/13658628

#SPJ1

4 0
3 years ago
6. Network monopolies The value of a network good as the expected number of units sold increases. Which of the following is an a
LuckyWell [14K]

Answer:

The authorities would issue a complaint if the network monopoly undertakes predatory practices to maintain its monopoly position

Explanation:

A monopoly is when there is only one firm operating in an industry.

The antitrust policy ensures the monopoly doesn't abuse its power and to protect consumers.

Predatory pricing is when a business sets its price very low with the intent of chasing out competitors from the market. This violates antitrust policy and as a result authorities would intervene.

I hope my answer helps you

3 0
3 years ago
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