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svp [43]
3 years ago
15

Suppose the price of hot wings is $10, the price of beer is $1, and the consumer’s income is $50. In addition, suppose the consu

mer’s budget constraint illustrates hot wings on the horizontal axis and beer on the vertical axis.If the price of beer doubles to $2, then the _________.
a. budget constraint intersects the vertical axis at 25 beers.
b. slope of the budget constraint rises to -2.
c. slope of the budget constraint falls to -4.
d. budget constraint shifts inward in a parallel fashion

Business
1 answer:
IgorC [24]3 years ago
7 0

Answer:

a. budget constraint intersects the vertical axis at 25 beers.

Explanation:

A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:

  • originally you could purchase 50 beers or 5 hot wings
  • then as the price of beer increases to $2, you can only buy 25 beers or 5 hot wings

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Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long ru
sukhopar [10]

Answer: 1. b. A stock's intrinsic value is based on true risk in the company.

2. a. A company that has been distributing a portion of their earnings every quarter for the past six years

Explanation:

1. A Stock's intrinsic value is what it is truly a measure of it's true risk. It is not like the market price that follows trading patterns but rather is based on factors inside the company. It is often arrived at through complex calculations that take into account the business aspects of the company and as such is much more thorough. This is why it is the true risk of a stock.

2. The Dividend discount model of stock valuation relies heavily on dividends bein gdistributed to calculate stock price. The formula requires that the dividend of the next period be divided by the rate of return minus the growth rate. A company that is paying no dividends therefore cannot use this model to calculate stock value which is why the first option is correct.  

<em>If you need any clarification do react or comment.</em>

7 0
3 years ago
Carol Byrd gets a student rate of $30.00 a month. There is a $250 deductible; but no coinsurance payment. She recently received
Elden [556K]

Answer: Company Pays $1640

Carol Bryd pays $410

Explanation:

The total bill is $2300 and the deductible needs to be taken out.

$2300-$250

=$2050

Company Payment.

Company Pays 80% which translates to 0.8

0.8*2050

= $1640 is the company Payment.

Carol then pays the difference which is

$2050 - $1640

= $410

Carol pays $410

6 0
3 years ago
Heidebrecht Design acquired 20% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $800,000 for the
DedPeter [7]

Answer:

Detailed step wise solution is given below:

4 0
3 years ago
To manufacture 3,000 pairs of sandals in a week, a firm can use 3,600 workers and 135 machines or 270 machines and 3,300 workers
Nutka1998 [239]

Answer:

3,600 workers and 135 machines is more technically efficient.

Explanation:

a. For 3,600 workers and 135 machines

Worker technical efficiency = 3,600/3,000 = $120%

Machine technical efficiency = 135 / 3,000 = 4.50%

Average technical efficiency = (120% + 4.5%) / 2 = 62.25%

b. For 270 machines and 3,300 workers.

Worker technical efficiency = 270/3,000 = $9%

Machine technical efficiency = 3,300 / 3,000 = 110%

Average technical efficiency = (9% + 110%) / 2 = 59.50%

Conclusion

Since the average technical efficiency of 62.25% is higher than 59.50%, 3,600 workers and 135 machines is more technically efficient.

8 0
3 years ago
Lasley Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat
yKpoI14uk [10]

Answer:

CMR: 52% --> each dollar of sales generates 52 cent of contribution

VCR: 48% --> 48 cent per dollar of sales are cost

BEPu:    10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.

BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.

Explanation:

selling price per hat:  $ 25

variable cost per hat: $  12

Contribution per unit $  13

Contribution Ratio:

13/25 = 0.52

Variable cost Ratio:

12/25 = 0.48

Fixed cost: 130,000

Break even point:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{130,000}{0.52} = Break\: Even\: Point_{dollars}

dollars of sales BEP: 250,000

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

\frac{130,000}{13} = Break\: Even\: Point_{units}

units sold to pay up variable and fixed cost: 10,000

4 0
3 years ago
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