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3 years ago

For questions 1-10, fill in the blank with the letter or term that best matches the description.

1 answer:

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1. A long-term rental - d. lease. As far as I remember a lease is a contract which defines the terms under which one one side agrees to rent property owned by another another side.

2. A guarantee which covers the entire car, with few (if any) exceptions. - h. Bumper–to–bumper warranty. When you buy new car it is the most comprehensive warranty available for you. It's also called wrap-around warranty.

3. The amount or percentage by which something decreases in value over time - e. Depreciation. It's true definition of depreciation like it's written in books.

4. The value of a piece of property, over and above any mortgage or other liabilities relating to it. Ownership right in property - g. Equity. Home equity is the part of your property value that you really own. 

5. The payment made to obtain insurance - i. Insurance premiums. The amount of insurance premiums is defined by insurance contract. Usually it's monthly or yearly payment.

6. Able to be trusted with financial responsibility; high likelihood of paying back debt - f. Reliability. It's 100% correct definition of the term "reliability" like it's written in books.

7. The retail value of something; the price that something is advertised as costing - j. Sticker price. As the previous one, it's truly correct definition of sticker price. It's a retail price of something.

8. The cost of something when bought directly from the manufacturer - b. Wholesale value. It's the price which DEALER would pay to manufacturer. It's much cheaper than sticker price.

9. Wholesale value minus depreciation, plus taxes, registration and licensing fees - a. Used car cost. This a correct explanation of used car cost. There are also could be an insurance.

10. Online resource for car pricing - c. Kelley Blue Book. Just search the Internet and you'll find much more resources for car pricing.

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Which of the following total cost functions suggests the presence of a natural monopoly?

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Answer: B. TC = 50 + 20Q

Explanation:

A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.

Some examples include, gas pipelines, electricity grids, and the like.

They act as both a deterrent for companies to join the market as well as to exit.

Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.

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3 years ago

By working in a series of positions with increasing responsibilities, the owner of Stonegate Gardens has built her interest in f

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By working in a series of positions with increasing responsibilities, the owner of Stonegate Gardens has built her interest in flowers and plants into a career

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3 years ago

Read 2 more answers

Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will make 16 d

daser333 [38]

Answer:

For Jerry, the opportunity cost of building a fence is not making 2 dishes.

Explanation:

The opportunity cost refers to the benefit you lose when you choose one option over another one. In this case, the opportunity cost for Jerry when he decides to build fences is that he won't be able to make dishes. So, as he can build 7 fences or make 14 dishes in a day, the opportunity cost of building a fence is that he won't be able to make 2 dishes.

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3 years ago

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi

VARVARA [1.3K]

Answer:

4,000 units

Explanation:

Given that

Sales volume = 60,000 units

Budgeted production = 54,000 units

Beginning finished goods = 10,000 units

The computation of units for ending finished goods inventory is computed below:-

Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

54,000 = Ending finished goods + 60,000 - 10,000

54,000 = Ending finished goods + 50,000

= 4,000 units

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3 years ago

Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and

barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

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3 years ago