Which of the following is not an example of one of the four mail advantages of prices on a free market economy

The price of a pair of sneakers was $80 for the last six months of last year. On January 1st, the price increased 20%. After the

kobusy [5.1K]

Answer:

$86.40

Explanation:

Businesses increase and reduce prices based on prevailing market conditions. If the price of a good has appreciated in the open marketbthen businesses tend to also increase their price.

When there is need to attract more customers or there is promotion of a product a discount (price reduction) can be used.

The price of the pair of sneakers increased in January, that is 100+20= 120% of the original price.

Price after increase= 1.2* 80= $96

Afterwards an employee bought the sneakers at a 10% discount that is 100-10= 90% of original price

Price after discount= 0.9* 96= $86.40

6 0

3 years ago

You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is try

Ivahew [28]

Answer:

14% and 22%

Explanation:

The formula to compute the return on investment is shown below:

Return on investment = Net income ÷ Investment

The preparation of the return on investment analysis is shown below:

Fast & Great Burgers

Return on investment analysis

Numerator ÷ Denominator = Return on investment

Location A $70,000 ÷ $500,000 = 14%

Location B $44,000 ÷ $200,000 = 22%

3 0

3 years ago

Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an

Anni [7]

Answer:

Is the mixed bundling type.

Explanation:

In marketing, product bundling is offering several products or services for sale as one combined product or service package. It is a common feature in many imperfectly competitive product and service markets.

Mixed bundling occurs when consumers are offered a choice between purchasing the entire bundle or one of the separate parts of the bundle.

6 0

3 years ago

Charlie, a sales executive with Pitt Alloy, Inc., learns of undisclosed company plans to produce a new type of alloy. Charlie le

Hitman42 [59]

Answer: B. liable for insider trading.

Explanation:

Under the Securities Exchange Act of 1934, we can infer that Alex is most likely liable for insurer trading.

Insider trading refers to when the stocks or bonds of a company are traded based on nonpublic information about the affected company.

In this case, since the material information is still non-public, this is illegal and Alex is liable for insider trading.

6 0

3 years ago

A stock has a beta of 1.90 and an expected return of 15 percent. A risk-free asset currently earns 3.6 percent. a. What is the e

anastassius [24]

Answer:

a. E(Rp) = W1 * E(R1) + W2 * E(R2) : W = Weight of risk free asset in portfolio , E(R) = Return of risk free asset

Expected Return of Portfolio = 0.5*3.6 + 0.5*15

Expected Return of Portfolio = 1.8 + 7.5

Expected Return of Portfolio = 9.3%

b. When a portfolio is composed of one risk free asset and one another risky stock

бp = W1 * б1

The S.D. of a stock or portfolio in this case as given by Beta

0.95 = W1 * 1.9

W1 = 0.95/1.9

W1 = 50%

Weight of risk free asset = 1 - 0.5

Weight of risk free asset = 50%

c. E(Rp) = W1 * E(R1) + W2 * E(R2)

7 = W1 * 3.6 + W2 * 15

With Trial and error method: W1 = 0.7, W2 = 0.3

Beta of Portfolio = 0.3 * 1.9

Beta of Portfolio = 0.57

d. Beta of Portfolio = Weight of risky asset * Beta of risky stock

3.8 = W * 1.9

W = 3.8/1.9

W = 2

Weight of risk free asset = 1 - 2

Weight of risk free asset = -1.

3 0

3 years ago