Answer:
The answer would be PRICE SIGNALING
Explanation:
Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.
Answer:
$42,700 cash is available for distribution
Explanation:
In order to calculate the cash available for sharing, we will first identify the debit and credit transactions. Debit transactions are expenditures, while credit transactions are incomes, hence we need to calculate the difference between the income and the expenditure.
Available cash = Everett (credit) - Miguel (debit) + Ramona (credit)
Available cash = 52,800 - 47,500 + 37,400 = $42,700
Therefore $42,700 is available in cash for distribution to the partners
Answer:
This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to <u>DECREASE</u> and the level of investment spending to <u>INCREASE</u>.
Explanation:
Since the tax rates on savings decreased, more money will be available for saving which will increase the supply of loanable funds. When the supply of any good or services increases, its price decreases. In this case, the price of money is the interest rate.
Since the interest rate decreases, the total quantity demanded for loans will increase, increasing the level of investment spending.
Answer:
they make different shoes for different people and uses
Explanation:
and Nike sucks they use sweat shops to make their shoes
Answer:
The present value of dividend to be paid at the end of year 1, year 2, and year 3 are $2.60, $2.95, and $2.84 respectively.
Explanation:
The end of the year dividend is $3 per share.
The dividend growth rate is 20%.
The discount rate is 15%.
PV of dividend to be paid at the end of year 1
=
=
=
=$2.60
PV of dividend to be paid at the end of year 2
=
=
=
=$2.72
PV of dividend to be paid at the end of year 3
=
=
=
=$2.84