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velikii [3]
2 years ago
8

Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets t

o people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay." However, Teresa says, "The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts. Economists generally agree with Eric or Kate?
Business
1 answer:
Scilla [17]2 years ago
5 0

Answer:

Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets to people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay." However, Teresa says, "The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts. Economists generally agree with Eric or Kate?

Economists would agree with Teresa.

Explanation:

Generally, economists would agree with Teresa because her argument is correct since by using stay over on a Saturday restriction, Airlines can divide the market based on their readiness to pay and is thus able to tap both markets.

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Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current
Arisa [49]

Answer:

a. $293,000

b. $203,000

Explanation:

a. What is Robert's qualified business income?

Robert's qualified business income is the net income minus Robert's salary. Since the salary of $87,900 has already been deducted, $293,000 is Robert's qualified business income.

b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $177,900?

Extra deductible salary = $177,900 - $87,900 = $90,000

New Robert's qualified business income = $293,000 - $90,000 = $203,000

3 0
3 years ago
A company's board of directors votes to declare a cash dividend of $.80 per share of common stock. The company has 16,000 shares
den301095 [7]

Answer:

$8,400

Explanation:

The computation of the total amount of the cash dividend is shown below:

= Outstanding number of shares × cash dividend per share

= 10,500 outstanding shares × $0.80

= $8,400

The cash dividend is computed only on outstanding shares i.e issues shares minus treasury shares

So, it will not be computed on authorized shares either on issued shares

5 0
3 years ago
A researcher at a large company has collected data on the beginning salary and current salary of 48 randomly selected employees.
alisha [4.7K]

Answer:

$2252.7

Explanation:

Residual is calculated by taking the difference of observed and predicted value.

The regression equation is

y= - 2532.7 + 2.12 x.

Where, y is the current salary and x is the beginning salary.

Mrs. Kathy Jones beginning salary= $19,000.

Mrs. Kathy Jones observed current salary= $40,000.

Residual for Mrs. Kathy Jones=Mrs. Kathy Jones observed current salary-Mrs. Kathy Jones predicted current salary.

Mrs. Kathy Jones predicted current salary

y^=  - 2532.7 + 2.12 (19000)

y^=  - 2532.7 + 40280

y^=37747.3

Mrs. Kathy Jones predicted current salary =$37,747.3

Residual for Mrs. Kathy Jones= $40,000-$37,747.3

Residual for Mrs. Kathy Jones=$2252.7

The residual for Mrs. Kathy Jones is $2252.7.

3 0
3 years ago
The ________, the difference between the interest rate on baa corporate bonds and u. s. treasury bonds. rose sharply during the
Valentin [98]

The credit spread, the difference between the interest rate on baa corporate bonds and u. s. treasury bonds. rose sharply during the great depression.

The yield difference between a U.S. Treasury bond and another debt security with the same maturity but a different credit rating is known as a credit spread. spreads on credit between the U.S.

A credit spread is another name for an options strategy in which, on the same underlying security, a high premium option is written and a low premium option is purchased. As a result, the account of the individual performing the two trades receives credit.

Without the banks, which supported the 1920s credit boom, the uncontrolled speculation that caused the 1929 crash and the Great Depression that followed could not have occurred. To sustain continuous production increase, new enterprises that produce things like autos, radios, and refrigerators borrowed money.

To learn more about credit spread refer to:

brainly.com/question/16815239

#SPJ4

3 0
1 year ago
Problem 4.1: Emaline Returns If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-
Rama09 [41]

Answer:

Yearly rate of return=25%

Monthly rate of return=0.0187%

Explanation:

Given present amount=$12

Given Future amount=$15

Using equation

F=P(1+i)^{n}

Where F is the future amount,P is the present amount and is the interest rate.

As n=12 since there are 12 months in the year and if calculate yearly n=1

15=12(1+i)^12

i=0.0187% monthly

8 0
2 years ago
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