Answer and Explanation:
I will go through each and every option explaining the reasons and what option would be the best:
The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.
The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.
The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.
The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.
Hence the answer is D.
The <u>aggregate demand</u> curve shifts <u>right</u>, output <u>increases</u>, and prices <u>increase</u> when the U.S. government doubles its spending on health care.
Aggregate demand or AD refers to the total demand for all individual goods and services.
The aggregate demand and supply for an economy can be depicted by a schedule, a curve, or even an algebraic equation. Just like the demand and supply for individual goods and services.
The total quantity of all goods and services that the economy demands at various price levels is illustrated by the aggregate demand curve.
Therefore, if the U.S. government doubles its health care spending, the aggregate demand curve shifts right, output rises, and prices rise.
Know what happens when there's equilibrium or when supply and demand meet: brainly.com/question/1342403
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Answer:
Terminal value
= 500(1+0.12)3 + 500(1+0.12)2 + 500(1+0.12)1+ 500(1+0.12)0
= 500(1.12)3 + 500(1.12)2 + 500(1.12)1 + 500(1.12)0
= 702.464 + 627.2 + 560 + 500
= $2,389.66
The correct answer is E
Explanation:
Terminal value is a function of number of years cashflow for each year can be re-invested at the appropriate discount rate. The cashflow for year 1 can be re-invested for 3 years since the life of the project is 4 years. cashflow for year 2 can be re-invested for 2 years, cashflow for year 3 can be re-invested for 1 year and cashflow for year 4 can be re-invested for 0 year.
Answer:
$9,920
Explanation:
The computation of the desired beginning inventory as on June 1 is shown below:
Inventory as on June 1 = Given percentage of the cost of goods sold in the month of June
= 10% × (40% × $248,000)
= 0.10 × $99,200
= $9,920
As the cost of goods sold is 40% of sales so we considered this thing and according to it we find out the beginning inventory
Answer:
Plant B
Explanation:
Total Demand = 9000000
Total Cost = Fix Cost + Variable Cost
Location A
Variable Cost = 9000000*0.3 = 2700000
Fix Cost = 4000000
Total Cost = 6700000
Location B
Variable Cost = 9000000*0.34 = 3060000
Fix Cost = 3600000
Total Cost = 6660000
Plant B is feasible because it will Save $40000
