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Lina20 [59]
3 years ago
9

For direct price discrimination to work a. ​The firm need not be able to identify the members of the low-value group b. ​The fir

m be able to charge the low-value customers a lower price than the higher-value customers c. ​The firm need not worry about any arbitrage since all its customers are charged the same price d. ​It needs to be too complicated for the customers to understand
Business
1 answer:
MakcuM [25]3 years ago
6 0

Answer:

The correct answer is letter "B": ​The firm be able to charge the low-value customers a lower price than the higher-value customers.

Explanation:

Price discrimination is the practice by which producers charge different prices to different consumers based on factors such as<em> age, income or location</em> to mention a few. This differentiation in prices is always justified by producers with one of those factors otherwise the approach would be considered illegal.

Direct price discrimination<em> is carried out when the firm charges lower prices to an unfavored sector of the market keeping the regular price in sectors where income is higher.</em>

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A company purchased factory equipment on April 1, 2021 for $175000. It is estimated that the equipment will have a $25000 salvag
bija089 [108]

Answer:

b. $11250

Explanation:

Capitalized Cost of Equipment = $175,000

Life of Assets = 10 years

Residual value = $25,000

Depreciable value = Cost - Salvage value

Depreciable value = $175,000 - $25,000

Depreciable value = $150,000

Depreciation per year = Depreciable value / Life of assets

Depreciation per year = $150,000/10 years

Depreciation per year = $15,000

Depreciation from April to December 2021 = $15,000*9/12

Depreciation from April to December 2021 = $11,250

3 0
2 years ago
There are two ways of calculating present and future values when there are multiple cash flows. Both approaches are straightforw
Vsevolod [243]

Answer:

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Explanation:

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3 0
2 years ago
risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon
Ipatiy [6.2K]

Answer:

<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.

<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.

Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.

3 0
3 years ago
The court hears a discrimination case in which they are asked to decide whether local anti-discrimination laws protect against a
Andreyy89

Answer:

The legislature's action is an example of: Revoking common law by new statutory law

Explanation:

First of all, we need to understand what is the difference between a common-law and statutory law.

<u>Common-law: </u>This is based on decisions made previously at court, they have judicial precedent, so when there are similar cases the judges base their decision on these precedents.

<u>Statutory law:</u> This is a formal type of law, given it passed the house of parliament or Congress. The statutory laws are written and they regulate the behavior of citizens. There are many examples of statutory laws: tax laws, traffic regulations, etc.

According to the definitions above, the statutory law is stronger than a common law because the statutory law can modify the common law, just as in the provided example:<em> The legislature, following the court ruling, passes a statute saying hair color is not covered by anti-discrimination laws.</em>

Despite the common law is based on prior decisions taken at court (precedents), these are not approved by the parliament or congress, unlike the statutory law.

8 0
2 years ago
Six months after starting a quilting business with a partner, Penny finds that actual revenues are significantly lower than proj
pychu [463]

Answer:

escalation of commitment

Explanation:

Penny invest into the business additional funds ignoring the expected outcome of the business (the future returns are not expected to increase)

Penny is not doing the proper analysis of the past six month

The invested funds, time and other resources should not be considered they are sunk cost. The 50,000 will increase the losses not cut them as the return are not going to improve. Additional funds should be invested when there is a financial need due to other project which required more lverage and not to make up for revenues falling behind budget

Penny avoids to acknowle the true fact of the business.

5 0
3 years ago
Read 2 more answers
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