Selective optimization with compensation (SOC). If you don't find an answer on this site, use Google.
Answer:
A) Seasonal discount
Explanation:
A Seasonal discount is a discount that is applied in specific periods of the year. For example: Christmas season, halloween season, black friday season, etc.
In this example, the good is a christmas tree, which is obviously related to the christmas season, therefore, the discount apply on it is a seasonal discount, even if the discount in not applied in December but in July.
Answer: Public tort
Explanation: In simple words, public tort refers to the minor breach of contract by an individual. It is considered as a civil offense but still the acts under this act carries a criminal punishment.
In the given case, Hal did not make the elevator inspected in the seventh story for two years, however all other were inspected as per the rules. Thus, we can conclude that he breached the rule on a small level.
Hence from the above we can conclude that his offense would be classified as public tort.
Answer:
Club membership fee of $60 would maximize profit.
If the club charges tow part pricing the maximum revenue can be $3500.
Explanation:
Joe has entered into a monopoly because he is owner of single golf course in the Northlands.
Demand function for Joe's golf course is:
P = 160 - 2q
P = $20 , q = 50
160 - 2 (50) = 60
Consumer surplus = 0.5 * equilibrium quantity
Consumer Surplus for Joe is ; 0.5 * 50 (160 - 20) = $3500
If MR = MC then demand function will become :
160 - 4q
If q = 25 then
160 - 4 * 25 = 60
The available options are:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.
However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.
Hence the true statements are:
II When interest rates rise, the price of the tranche rises
III When interest rates fall, the price of the tranche falls
