Answer:
<u>to keep their prices the same</u>
Explanation:
Remember, having a higher Menu cost implies that such a firm would suffer more if it adjusted its prices.
So the sticky-price theory makes the assumption that a firm that notices an increase in the prices of their products would <em>keep their prices low</em> out of fear that doing so would result in losses for the firm if demand changes negatively.
Answer: The following statements is correct: <em><u>Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.</u></em>
Bond covenants are considered to be part of the judicial bindings that forms up a bond, irrespective of the fact whether it is issued by a institution or the authorities. They are normally supposed to defend capitalist by rendering some certainty on the bond.
Answer:
Implicit Costs = $35,000
correct option is b. $35,000
Explanation:
given data
total revenue = $100,000
rent = $3,000
overhead averages = $500 per month
Ramona earn = $35,000 per year
to find out
total implicit costs
solution
we know that here Total Rent paid is
Total Rent paid = 3000 × 12
Total Rent paid = $36000
and
Total employee payment = 2000 × 12
Total employee payment = $24000
and
Total ingredient and overhead = 500× 12
Total ingredient and overhead = $6000
and
Explicit Costs = 36000 + 24000 + 6000 = $66000
so here
Implicit Costs = The opportunity cost of not working as a manager
Implicit Costs = $35,000
correct option is b. $35,000
20.94% is the expected rate of return
<u>Explanation:</u>
<u>The following formula is to be used for the expected rate of return
</u>
Expected rate of return = Sum of probability multiply with rate of return
= 0.2094
= 20.94%
The expected rate of return means such return which an investor expects from the amount that has been invested by him into the business organization. It is significant to calculate the rate of return in order to find out the viability of a company.
