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Inessa [10]
3 years ago
12

Osion Electronics Inc. incurs a cost of $350 to produce one unit of a cell phone. The company's management has priced the produc

t at $600 in the market. Considering the technological advancement of the cell phone, customers perceive its value to be around $800. What is the economic value created in this scenario
Business
1 answer:
Vsevolod [243]3 years ago
7 0

Answer:

The economic value establish in this case is $450

Explanation:

Economic value is the term which is defined as the computation of the profits an asset has either manufactured or might produce in the future. It is that measure of the product or service benefit provide the economic agent.

For computing the economic value as:

EV (Economic value) = (Actual rate of return - Cost of Capital) × Net Investment

where

Actual rate of return is $800

Cost of capital is $350

Net Investment is nil

Putting the values above:

EV = $800 - $350

EV = $450

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Calculate the value of a bond that matures in 16 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13
spayn [35]

Answer:

$1,069.74

Explanation:

We use the present value formula which is shown in the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 12%

NPER = 16 years

PMT = $1,000 × 13% = $130

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the value of the bond is $1,069.74

7 0
3 years ago
In an investment center, the manager has the responsibility for and the authority to make decisions that affect a. both costs an
yaroslaw [1]

Answer:

The answer is B.) Cost, revenue, and assets invested in the center

Explanation:

An investment center is a responsibility center in which the department manager is responsible for costs, revenues and assets for the department.

An investment center is also a business unit in a firm that can utilize capital to contribute directly to a company's profitability.

Examples of departments that make up the cost center are the human resource and marketing departments, units that falls under a profit center include the manufacturing and sales department.

6 0
2 years ago
Assume the production of a good causes a negative externality. In the market equilibrium, the marginal consumer values the good
rosijanka [135]

Answer:

less than the social cost of producing it

Explanation:

A negative externality is a cost that is suffered by a third party as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organisation, property owner, or resource that is indirectly affected. Externalities are also referred to as spill over effects, and a negative externality is also referred to as an external cost.  Some externalities, like waste, arise from consumption while other externalities, like carbon emissions from factories, arise from production. For example, If we consider a manufacturer of computers which emits pollutants into the atmosphere, the free market equilibrium will occur when marginal private benefit = marginal private costs, at output Q and price P. The market equilibrium is at point A. However, if we add external costs, the socially efficient output is Q1, at point B.  At Q marginal social costs (at C) are greater than marginal social benefits (at A) so there is a net loss. For example, if the marginal social benefit at A is £5m, and the marginal social cost at C is £10m, then the net welfare loss of this output is £10m - £5m = £5m. In fact, any output between Q1 and Q creates a net welfare loss, and the area for all the welfare loss is the area ABC.  Therefore, in terms of welfare, markets over-produce goods that generate external costs. In the market equilibrium, the marginal consumer values the good less than the social cost of producing it.

3 0
3 years ago
If the costs of health insurance paid by employers decrease, then the economy will experience a _____ shock. Please choose the c
maria [59]

Answer:

The correct answer is letter "D": positive supply.

Explanation:

A supply shock occurs when an unexpected event changes the supply of a good or service which changes the price of that product. When the supply shock is positive, the supply increases and the price decreases. If the supply is negative, the supply decreases and the prices increase.

Thus, <em>if the costs of health insurance decrease, expecting an increase in the supply in health insurance, the supply shock will be considered positive.</em>

6 0
3 years ago
Read 2 more answers
Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it
soldi70 [24.7K]
Option B Expansionary stance
6 0
3 years ago
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