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3 years ago

What happens when a price floor is imposed above the equilibrium price of a good?

1 answer:

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<span>Price floors can have differing effects depending on other government policies. If the government agrees to purchase a specific maximum of unsold products at the price floor, it incentivizes a business to increase supply or at least to stay in the industry despite slow sales. Many governments do this for areas they see as strategically or politically significant, such as agriculture, or to prevent what they consider to be unfairly low prices of its products. If a foreign government sets a price floor for coffee beans, for example, and then agrees to buy the surplus up to a certain amount, it encourages growers to maintain their operations by placing an effective hedge against price fluctuations. If you own a small coffee shop, these price floors mean that you’re more likely to be able to find your imported beans, but you’ll pay more for them</span>

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According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop

mezya [45]

Answer:

b. hedonic prices.

Explanation:

Hedonic prices -

It refers to the method by which the combined price of the goods and services are taken , in order to measure the implicit price of the non - market goods , is referred to as hedonic prices .

The model helps to predict the quantitative values for the environmental or ecosystem services which is capable to affect the market prices for homes .

Hence , from the given scenario of the question ,

The correct answer is hedonic prices .

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3 years ago

The __________ for a given investment is the minimum risk-adjusted return required by the shareholders of the firm for undertaki

Igoryamba

Answer:

a) cost of equity capital

Explanation:

A investor demand the rate of return based on the risk involved in a particular investment. The shareholders invest in the equity of the firm, the required rate of return of shareholders is the cost of equity capital. As the firm is more risky the cost of equity capital will be higher and less risky have lower cost of equity capital.

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3 years ago

The New Zealand dollar to U.S. dollar exchange rate is 1.35, and the British pound to U.S. dollar exchange rate is 0.61. If you

ExtremeBDS [4]

Answer:

The riskless profit is $0.2 per US dollar invested.

Explanation:

New Zealand dollar to US dollar exchange rate is 1.35

1 US dollar = 1.35 New Zealand dollars

1 New Zealand dollar = 0.54 pounds

Calculate the number of pounds that one can buy with 1.35 New Zealand dollars -

Number of pounds = 0.54 * 1.35

= 0.729 pounds

The number of pounds that one can buy with 1.35 New Zealand dollars is 0.729 pounds.

1 US dollar = 0.61 pounds

1 Pound = (1/0.61) US dollars

1 Pound = $1.64

Calculate the number of US dollars that one can buy with 0.729 pounds -

Number of US dollars = 0.729 * 1.64 = $1.2

The number of US dollars that one can buy with 0.729 pounds is $1.2

It can be seen that investing 1 US dollar and then cross conversion leads to a return of $1.2.

Riskless profit = $1.2 - $1 = $0.2

Therefore, The riskless profit is $0.2 per US dollar invested.

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3 years ago

The management of Log Cabin Inc. allows employees to participate in decision making, maintains transparency of certain business

RideAnS [48]

Answer:

Management by objectives

Explanation:

Management by objective, also called management by result, allow employees' to participate in decision making with a focus on achieving set business results. Management by objective is result oriented.

0 0

3 years ago

Ones Corporation switched from the LIFO method of costing inventories to the FIFO method at the beginning of 2017. The LIFO inve

RideAnS [48]

Answer:

If LIFO inventory at the end of 2016 would have been $80,000 higher using FIFO, it means that when using FIFO the cost of goods sold would have been 80,000 lower.

Which would mean that the reproted retained earnings would have been 1,750,000+ 80,000=1,830,000

Debit Credit

Inventory 80,000

Costs of good sold 80,000

Explanation:

5 0

4 years ago