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Luba_88 [7]
4 years ago
5

When the price of a good or service is _________enough, it will encourage consumers to buy. However, the price also has to be __

____enough to encourage producers to sell. In this way, both parties benefit from the sale. In order to calculate producer surplus, sellers must understand their direct costs and their _______costs, while consumers must consider their ______price based on the value they place on a particular good or service.
Business
1 answer:
asambeis [7]4 years ago
4 0

Answer:

The correct words for the blank spaces are (<em>in that order</em>): low; high; opportunity; reservation.

Explanation:

For buyers and sellers to benefit from a transaction, the price of the goods or services offered must be at equilibrium. It implies the price is low enough for consumers to consider purchasing the product and high enough for producers to offer it earning a profit.

Besides, producers should consider their opportunity costs which are the costs of adding one more unit for production. On the other side of the road, consumers consumer their reservation price which is the maximum amount of money they could pay for a good or service based on the value they give to the product.

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Match the specifications to the type of creditors.
mote1985 [20]

Sarah - cord source funding

Daphne - government loans because SBA is a government agency.

Pat - venture capital

Albert - asset backed lending because he is using collateral (assets) to secure his loan.




5 0
3 years ago
Assume a $170,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 40,000 $ 60,000 2 60,00
Arturiano [62]

Answer:

a. Product X = 3.50 years

   Product Y = 3.25 years

b. Product Y

Explanation:

The cash flows for the two products as well as the balance at the end of each year is given as follows:

Initial\ balance = -170,000\\\\\begin{array}{ccccc}Year&Product\ X&Product\ Y& Balance\ X& Balance\ Y\\1&40,000&60,000&-130,000&-110,000\\2&60,000&70,000&-70,000&-40,000\\3&50,000&30,000&-20,000&-10,000\\4&40,000&40,000&20,000&20,000\end{array}

For both products, the payback period is reached between the third and fourth year.

Product X:

Payback = 3+\frac{20,000}{40,000} = 3.50\ years

Product Y:

Payback = 3+\frac{10,000}{40,000} = 3.25\ years

Under the payback method, the alternative that presents the shortest payback period should be selected. Therefore, Product Y should be selected.

3 0
3 years ago
Union Local School District has bonds outstanding with a coupon rate of 3.1 percent paid semiannually and 22 years to maturity.
arlik [135]

Answer:

The price of the bond is $9,537.91

Explanation:

Coupon payment = $10,000 x 3.1 = $310 / 2  = $155

Number of period = n = 22 x 2 = 44 semiannual periods

Face Value = $10,000

Yield to maturity = 3.4% yearly = 3.4% /2 = 1.7% semiannually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$155 x [ ( 1 - ( 1 + 1.7% )^-44 ) / 1.7% ] + [ $10,000 / ( 1 + 1.7% )^44 ]

Price of the Bond = $155 x [ ( 1 - ( 1.017 )^-44 ) / 0.017 ] + [ $10,000 / ( 1.017 )^44 ]

Price of the Bond = $4,774.94 + $4,762.97

Price of the Bond = $9,537.91

5 0
3 years ago
The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
Rom4ik [11]

Answer:

b. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.

Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.

For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.

The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.

7 0
3 years ago
If Joe to Go decides that a joint venture has too much risk and franchising does not provide enough financial payoff, what strat
Temka [501]

<u>Answer:</u>

<em>It chooses (D) Direct investment exporting  strategy</em>

<em></em>

<u>Explanation:</u>

Countries in a few decades have made significant forward jumps towards a comprehensive domain, which has contributed incredibly to making worldwide business dealings free from restrictions. In the overall marvel of Globalization, outside direct speculation (FDI) is quickly turning into a significant factor in the commercial development of firms and nations.

For any firm to create and develop it needs to extend its exercises all around, and to accomplish that target; there are diverse market section modes accessible to the firm going from FDI.

5 0
3 years ago
Read 2 more answers
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