Answer:
(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.
Explanation:
Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.
Answer:
a. $337,000
Explanation:
Calculation to determine How much cash was provided by operating activities
Using this formula
Cash provided by Operating activities=Net income+Depreciation+Account receivable+Inventories decreased -Prepaid expenses+Accounts payable increased
Let plug in the formula
Cash provided by Operating activities=$240,000 + $50,000 + $10,000 + $30,000 - $1,000 + $8,000
Cash provided by Operating activities=$337,000
Therefore the cash provided by operating activities was $337,000
Answer:
b. bait pricing
Explanation:
Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.
This is considered an illegal means of marketing.
I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.
This is bait pricing strategy.
When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.
Hope that helps!
Answer:
d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.
Explanation:
Nominal interest rate = real interest rate + inflation rate
Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.
If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.
The nominal interest rate is 6 %
Inflation rate = nominal interest rate - real interest rate
= 6% - 5% = 1%
I hope my answer helps you.