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Arada [10]
3 years ago
8

Scenario 17-5. assume that a local restaurant sells two items, salads and steaks. the restaurant's only two customers on a parti

cular day are mr. carnivore and ms. leafygreens. mr. carnivore is willing to pay $20 for a steak and $7 for a salad. ms. leafygreens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. assume that the restaurant can provide each of these items at zero marginal cost. if the restaurant is able to use tying to price salads and steaks, what is the profit-maximizing price to charge for the "tied" good?
Business
1 answer:
rodikova [14]3 years ago
8 0

Answer: The price of the tied good is $20.

Explanation: The practice of tying is used to package products in such a way that the price of the tied (combined) good is closer to the buyers total willingness to pay for the two goods.

In this case, the total willingness to pay of Carnivore is $20+$7=$27

While, that of Leafygreens is $8+$12=$20

Thus, the producer will sell the combined good at $20 as it this price both the consumers will buy the tied good. If the producer sells it at $27, then only the Carnivore will buy the good but Leafygreens will not.

Thus, with zero marginal cost of serving additional consumer it is better for the producer to sell at $20.

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You have just taken out an installment loan for $100,000. Assume that the loan will be repaid in 12 equal monthly installments o
Rama09 [41]

Answer:

$7,757.16

Explanation:

rate of interest = 2%

Rate(12, 9456-100000)

Rate(nper,pmt,pv)

APR = 24.00%

           (Rate*12)

Principal for third monthly payment = PPMT(2%,3,12,-100000)

               = $7,757.16

7 0
3 years ago
Frederick herzberg believed the best way to motivate employees with through his model of , which expands job content to create m
gayaneshka [121]
The answer is:   "job enrichment" .
_____________________________________________
<span>       "Frederick Herzberg believed the best way to motivate employees with through his model of <u>  job enrichment  </u><u /> , which expands job content to create more opportunities for job satisfaction." 
_____________________________________________</span>
3 0
3 years ago
Prepare the general journal entries for Culver Company for____________.(a) The 2020 adjusting entry.(b) The sale of the Gordon s
-Dominant- [34]

Answer:

a) Debit fair value loss $7,900 Credit Investment $7,900

b) Debit Bank $66,300, Debit Fees $1,200 Credit investment $67,500

c) Debit investment $53,800, Credit Fees $1,300 Credit Bank $52,500

d) Debit Fair value loss $10,400 Credit Investment $10,400

Explanation:

c) the purchase of stock include fees and the fees are included in the cost of the shares and increase the cost of the asset hence they are capitalised on the cost. The fees are an expense directly associated with the purchase therefore are attributable costs.

the completed question

E17-15

(Equity InvestmentsTrading) Culver company has the following securities in its trading port- folio of securities on December 31, 2020.

Investments (Trading)                                                              Cost                                     Fair Value

1,500 shares of Gordon, Inc., Common                     $73,500                                   $ 69,000

5,000 shares of Wallace Corp., Common                  180,000                                   175,000

400 shares of Martin, Inc., Preferred                         60,000                                     61,600

$313,500                                 $305,600                                    

All of the securities were purchased in 2020.

In 2014, Culver completed the following securities transactions.

March 1Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200

April 1   Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300

Culver Companys portfolio of trading securities appeared as follows on December 31, 2021

Investments (Trading)            Cost                             Cost                            Fair Value

5,000 shares of Wallace Corp., Common      $180,000                     $175,000

700 shares of Earnhart Corp. Common         53,800                         $50,400

400 shares of Martin, Inc. Preferred              60,000                         $58,000

                                                                       293,800                       283,400

Instructions

Prepare the general journal entries for Culver Company for:

(a)The 2020 adjusting entry.

(b) The sale of the Gordon stock.

(c)The purchase of the Earnhart stock.

(d) The 2021 adjusting entry for the trading portfolio

3 0
3 years ago
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro.
lianna [129]

Answer:

$4.24287 million per year

Explanation:

Missing question:  The swap will call for the exchange of 1 million euros for a given number of dollars in each year.

For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows

Forward exchange rate * $1 million error = Dollar to be received

Year 1 = 1.50*(1.04/1.03) * 1 million euros

Year 1 =  1.514563106796117 * 1 million euros

Year 1 =    $1.5145 million

Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros

Year 2 = 1.529267602978604 * 1 million euros

Year 2 = $1.5293 million

Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros

Year 3 = $1.5441 million

The number of dollars each year is determined by computing the present value:

= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3

= 1.45625 + 1.41392 + 1.3727

= $4.24287 million per year

3 0
3 years ago
Game theory suggests that competing firms in an oligopolistic industry may be
alina1380 [7]

Game theory suggests that competing firms in an oligopolistic industry may be  reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases.

<h3>What is Game theory?</h3>

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing. Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

Here are the options:

. too quick to raise prices because they will fail to anticipate that rivals may gain market shares.

b. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases

c. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases

d. too quick to cut prices because they fail to anticipate that rivals may also cut their prices.

To learn more about game theory, please check: brainly.com/question/25746243

6 0
2 years ago
Read 2 more answers
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