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.
Which activity best demonstrates the trait of responsibility?
A. demonstrating accountability for your actions
Out of the options, demonstrating accountability for your actions is the activity that best demonstrates the trait of responsibility. Your actions are of no ones responsibility besides you, you must understand the decisions you make. All of the other options are all important but not examples of accountability.
Answer:
the fixed costs for Rackit Corporation is $161,500.
Explanation:
Cash Flow DOL = 1 + Fixed Cost / EBITDA
2.7 = 1 + Fixed Cost / 95,000
1.7 = Fixed Cost / 95,000
Fixed Cost = $161,500
Therefore, the fixed costs for Rackit Corporation is $161,500.
Answer:
Inferior good
Explanation:
Inferior goods are those type or the kind of goods whose demand falls or decline when the income of the person or customer or individual rises or increases.
In short, the demand of the inferior goods is related inversely to the customer or person income.
So, in this case, the person bought 10 frozen pizzas per month, but when the person start earning, then the person would not buy the frozen pizzas. The frozen pizza will be inferior good for the person as the income of the person will rise.