What is the law of diminishing returns? The law of diminishing returns states that

An Empirical Bargaining Model with Digit Bias – A Study on Auto Loan Monthly Payments

dedylja [7]

Answer:

This study was carried on by Jiang, Zhenling, during the first semester of 2019 and it involved more than 35 million auto loans in the US. The author determined that monthly payments carrying a $9 ending digit, e.g. $199, had a highest interest rate charged. While those monthly payments carrying a $0 ending digit, e.g. $200, had the lowest interest rate charged. African American and Latin consumers were the most negatively affected groups by the higher interest rates.

The study showed that an effective bargaining tactic would decrease total payments significantly. This research also includes a lot of other information regarding the total economic effects of ending digit bias.

Explanation:

I personally guess that many car sellers and auto loans institutions tempt both African American and Latin consumers by using apparently lower monthly payments (psychologically we all consider $199 to be much cheaper than $200) in order to charge higher interest rates. They also probably offer longer term loans, e.g. 5-6 year loans instead of 3-4 year loans.

3 0

3 years ago

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Andrei [34K]

Answer: Originally he planned to paint his apartment

Explanation: The loss of other alternatives when one alternative is chosen is what we call opportunity cost. opportunity cost Is when an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice. In a simple term, Opportunity cost is an economics term that refers to the value of what you have to give up in order to choose something else.

5 0

3 years ago

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respec

Black_prince [1.1K]

Answer:

MPC = 0.7

MPS = 0.3

APC before the increase in disposable income = 0.875

APC after the increase in disposable income = 0.859

Explanation:

Given that,

Disposable income = $800 billion

Consumption = $700 billion

Savings = $100 billion

Further,

Disposable income increases by $80 billion

Consumption rises by $56 billion

Saving goes up by $24 billion

Therefore,

Marginal propensity to consume(MPC):

= Change in consumption level ÷ Change in disposable income

= $56 billion ÷ $80 billion

= 0.7

So, Marginal propensity to save = 1 - MPC

= 1 - 0.7

= 0.3

Average propensity to consume(Before increase in disposable income):

= Consumption ÷ Disposable income

= $700 billion ÷ $800 billion

= 0.875

Average propensity to consume(After increase in disposable income):

= Consumption ÷ Disposable income

= ($700 + $56) billion ÷ ($800 + $80) billion

= $756 billion ÷ $880

= 0.859

3 0

3 years ago

From late january through early february of 1972, john and yoko tape five shows as co-hosts for the emmy-winning _______________

Elza [17]

The Mike Douglas Show

The Mike Douglas show was a daytime variety and talk show on television hosted by Mike Douglas. It was initially only aired in Cleveland, Ohio, and then expanded to Philadelphia, and later on, nationwide. It has won the following Emmy Awards:

1. Program and Individual Achievements in Daytime Programming – Individuals - for Mike Douglas in 1967

2. Outstanding Individual Director for a Daytime Variety Program - for Don Roy King in 1977 for the episode "Mike in Hollywood with Ray Charles and Michel Legrand"

3. Outstanding Individual Achievement in Daytime Programming - for David M. Clark in 1978

4. Individual Achievement in Any Area of Creative Technical Crafts – Costume Designer - for Dayton Anderson in 1981 for the episode aired on February 9, 1981.

3 0

4 years ago

After you send in your FAFSA form what will you receive back

dangina [55]

You'll receive the Student Air Report....

8 0

4 years ago

What is the law of diminishing​ returns? The law of diminishing returns states that

What is the law of diminishing returns? The law of diminishing returns states that