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vovangra [49]
3 years ago
12

You want to determine whether there is a lemons problem in the market for​ single-engine airplanes. Can you use any of the follo

wing information to help answer this​ question? If​ so, how? a. Repair rates for​ original-owner planes versus planes that have been resold A. No. The information would only be useful if the repair rates varied across different models of airplanes instead of original owner versus resold planes. B. Yes. If repair rates are higher for​ original-owner planes, this would be an indication of a lemons problem. C. Yes. If repair rates are higher for planes that have been​ resold, this would be an indication of a lemons problem. D. No. Repair rates are a poor indicator of the quality of an airplane as planes require frequent repairs.
Business
1 answer:
Andreas93 [3]3 years ago
3 0

Answer:

C. Yes. If repair rates are higher for planes that have been​ resold, this would be an indication of a lemons problem

Explanation:

Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.

Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.

Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.

Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.

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d. $10.

Explanation:

Tax is a payment made to the government to assist it in financing its various programs. Taxes are the main source of government revenue.  Income tax is the tax levied on individuals and firms on their earnings.

Susan and Rebecca enter into a work agreement where Rebecca hires Susan to dog sit for her. Susan will be working and is expected to pay taxes on the income received. Rebeca will be attending a wedding, which is not an income-generating activity; hence she will not pay any taxes. It means only Susan will pay taxes as she is the only one who will be earning. If the tax imposed on dog sitting is $10, then the two ladies will be worse-off by $10.

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Answer:

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To continue, the third one, <em>the relational switching cost</em> refers to the situation where a company has changed its supplier and a big loss of identification and emotional bonds changed as well with it. Furthermore, when relational switching costs take place the personal relationships between the people involved in the transactions of the company are lost and that generates an impact in the new relationships with the new supplier.

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Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will
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Answer:

The value of the stock at the given discount rate is $9.5

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Plugging these values into the equation, we have;

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