Answer:
The correct option is (b)
Explanation:
Given:
Monthly payment for 6 months = $30 per month
Time period = 6 month (6 periods)
Monthly interest rate = 2%
In order to compute borrowed amount, present value of these payments need to be computed which is an annuity as same amount of $30 is paid.
Checking PVIFA table for 2%, 6 periods, annuity factor is 5.6014.
Borrowed amount = Monthly payment × PVIFA(2%,6)
= 30 × 5.6014
= $168.042
Borrowed amount is $168.042 or $168.22 approximately (difference in value due to annuity factor being rounded off)
Answer:
A. Internal
Explanation:
Internal supply chain refers to the chain of activities within a company that concludes with providing a product to the customer. This process involves multiple functions within companies such as sales, production, and distribution.
Processing of the grilled cheese and bread fall under the production option, while sake of the sandwich falls under sales and distribution.
Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price = 
= 
= 0.1818
% Change in Quantity demanded
=
= 
= -0.2857
Thus,
Price elasticity of demand = 
= 
= -1.5715
Therefore, the price elasticity of demand = -1.5715
Answer:
Market Power
Explanation:
Market Power is the ability of firms to raise price above the level of perfect competition price. Perfect Competition charge Price = Marginal Cost, Imperfectly, other imperfect markets charge price > MC.
This power is used by imperfect market structures - monopoly, oligopoly, monopolistic competition. They can use this power because - they have control over market price, as they comprise a significant part of market supply. Eg : Monopolies usually use 'artificial scarcity' model to maintain a surplus in market & charge higher prices.
