1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
agasfer [191]
3 years ago
14

Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently. However, none of the pote

ntial customers who came to buy the laptop were able to discover the problem and one of them actually bought it at a remunerative price. This occurred due to ________.
a) the selective retention of information by sellers the presence of positive
b) externalities the presence of negative
c) externalities the presence of asymmetric information
Business
1 answer:
zaharov [31]3 years ago
5 0

Answer: The presence of asymmetric information

                                               

Explanation:  In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.

Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.

In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.

You might be interested in
During 2016, Rao Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on
Over [174]

Answer:

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

                                                = $558,000

And, the actual warranty expenditure is $239,000

Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

6 0
3 years ago
Suppose that for 10 bicycles, the total fixed cost is $100 and total variable cost is $300. Then the average fixed cost and aver
Stells [14]

The price one bicycle is $21

Explanation:

because 100÷10=0.1

and the total is 300$

300-100=20

20+0.1=20

answer is 21

7 0
2 years ago
Conducting ourselves ethically and within the law of business practices
Leno4ka [110]
Conducting yourself ethically and legally could have examples of: making products that are trustworthy, don't false advertise (yes, you can legally do things like endorsements and bandwagons, but you can't say "If you buy this product, you will be elected to a high office!".
3 0
3 years ago
Which of these is NOT an assumption of the basic continuous review​ model?
VladimirAG [237]

Answer:

D. The order quantity is​ constant, regardless of the demand.

Explanation:

Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.

It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.

The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.

6 0
3 years ago
The declaration, record, and payment dates in connection with a cash dividend of $375,000 on a corporation’s common stock are Oc
Natali5045456 [20]

Answer and Explanation:

The Journal entry is shown below:-

October 1

Cash Dividends Dr, $335,000

         To Cash Dividends Payable $335,000

(Being a cash dividend is recorded)

November 7

No Journal entry is required

December 15

Cash Dividends Payable Dr, $335000

           To Cash  $335,000

(Being a cash dividend is recorded)

4 0
3 years ago
Other questions:
  • MasterCom Corporation corporation produces a semiconductor chip used on communications. the direct materials are added at hte st
    14·1 answer
  • lpha Corporation is interested in expanding its operations to South Africa. Alpha finds a South African company that is in a sim
    8·1 answer
  • Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due
    12·1 answer
  • Collins offers to sell to Phillip an antique chest of drawers worth more than $2,500. Philip agrees to buy the chest an signs a
    11·1 answer
  • A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated
    14·1 answer
  • If you're unsure of what chart to use for a set of data, what feature does Excel include that will help you to decide? A. Sparkl
    7·1 answer
  • Dividends at FSL are expected grow at a rate of negative 5.4% per year (the dividends are getting smaller). The stock just paid
    15·1 answer
  • Many performers, like singers, actors, and athletes, get paid large amounts of money. Do you think they earn these amounts or sh
    15·2 answers
  • Tobias has a brokerage account and buys on the margin, which resulted in an interest expense of $52,000 during the year. Income
    15·1 answer
  • Cecilia has studied economics and knows about the value and investment potential of diamonds. the price of diamonds has recently
    14·3 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!