Monopolies engage in price discrimination possible because they can get away with it.
A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay.
Consumers must pay the price of said product because they can not get the same product from any other seller.
Answer: D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable
Explanation:
Derek has to accept that by joining the tour group, he assumed some the risk of some elements of danger amongst them the bear attack.
Even though there had been no prior attack by bears in the mountain, a mountain hike still has some inherent danger in it and this includes bears. He cannot hold the tour company liable using this reason alone.
Let's see there's forming, storming, norming and performing. I would use teambuilding during forming to limit the amount of storming in the next stage.
Answer:
WACC = 0.18 or 18%
Option b is the correct answer.
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- D, P and E represents debt, preferred stock and common equity respectively
- r represents the cost of each component
- rD * (1-tax rate) represents the after tax cost of debt
WACC = 0.2 * 0.16 + 0.8 * 0.185
WACC = 0.18 or 18%
Answer:
$109,688.89
Explanation:
According to the scenario, computation of given data are as follows,
Formula for Net present value are as follows,
NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - 
) ÷ r + Net working capital ×
Where, r = rate of return
n = number of years
By putting the value, we get
NPV = -28,000 - 2,800 + 32,500 × ( 1 - 
) ÷ 0.14 + 2,800 ×
By solving the above equation, we get
NPV = $109,688.89
