Answer:
$370.69
Explanation:
Given the following :
Capacity (n) = 430
Cost incurred by airline per flight = $4000 + $60 per passengers
If ticket price = T ; (430 - 0.58T) are expected to book.
Determine the ticket price, T, that will maximize the airline's profit.
Profit = Revenue earned - cost incurred
Revenue earned = capacity * price = nT
Cost incurred = $4000 + $60n
Profit = nT - (4000 + 60n)
If ticket price = T ; (430 - 0.58T) are expected to book. Then n = (430 - 0.58T)
Profit = (430 - 0.58T)T - ($4000 + 60(430 - 0.58T))
Profit = 430T - 0.58T^2 - ($4000 + 25800 - 34.8)
Profit = 430T - 0.58T^2 - 4000 - 25800 + 34.8
Profit (P) = - 0.58T^2 + 430T −29834.8
Taking the first derivative of P
P' = 2(-0.58T) + 430
P' = - 1.16T + 430
Hence solve for price (T) when P' = 0
0 = - 1.16T + 430
1.16T = 430
T = 430 / 1.16
T = 370.68965
Price = $370.69
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer:
b. uses a company's valuable and rare resources and competitive capabilities to deliver value to customers that rivals have difficulty matching.
Explanation:
Resources refers to competitive and valuable assets, organizational processes, capabilities, information, attributes, and knowledge that are acquired, owned and controlled by an organization. These resources are classified into two (2) main categories;
1. Tangible resources: these are physical assets such as equipments, financial assets, plants, raw materials, inventory etc that are owned and controlled by an organization.
2. Intangible resources: these are assets that are abstract in nature such as knowledge, customer loyalty, skills, experience, stakeholders, patent, culture, buyer recognition etc.
Hence, a resource-based strategy uses a company's valuable and rare resources and competitive capabilities to deliver value to customers that rivals have difficulty matching. This ultimately implies that, resource-based strategy avails a company the ability or opportunity to use their tangible and intangible assets to provide finished goods and services to meet the needs or wants of customers, as well as creating a competitive advantage over rivals in the same industry.
Answer:
d
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Investment A
Cash flow in year 0 = -$150
Cash flow in year 1 = $80
Cash flow in year 2 = $40
Cash flow in year 3 = $40
Cash flow in year 4 = $30
I = 10%
NPV = 6.33
Investment A
Cash flow in year 0 = -$150
Cash flow in year 1 = $40
Cash flow in year 2 = $50
Cash flow in year 3 = $60
Cash flow in year 4 = $55
I = 10%
NPV = 10.33
Project B has a higher NPV and it should be chosen
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Full question:
In some states and localities, scalping is against the law although enforcement is spotty
A. Using supply/demand analysis and words, demonstrate what a weakly enforced antiscalping law would likely do to the price of tickets.
B. Using supply/demand analysis and words, demonstrate what a strongly enforced antiscalping law would likely do to the price of tickets
Answer and Explanation:
A. For the first scenario, a weakly enforced antiscalping law would still allow the resale of tickets as it is not enforced properly. Therefore it's effect on price would remain as though there were no laws restricting scalping( scalping: price increase created by artificial shortage and bulk resale of tickets) . See the attached diagram for the supply and demand curve and price increase as a result of a weak antiscalping law
B. For the second scenario, scalping has no effect on price as antiscalping laws are strong and therefore there is no scalping. Price remains the same and does not change.
In diagram A for first scenario price increases from p1 to p2 and quantity decreases from q1 to q2 to indicate increase in price and quantity decrease for shortage respectively. This shows the effect of scalping on the market with weak antiscalping laws
In diagram B, price and quantity remain the same to show strong antiscalping laws
