Answer:
The correct answer is: The consumer considers the prices of the products.
Explanation:
When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.
We can represent it as,
Answer:
D. Razor -Razor -blade
Explanation:
A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.
True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.
Hence the answer is D. Razor -Razor -blade
Answer: c. $9,937.52
Explanation:
The Accounts receivable balance can be calculated by;
= Outfits per years * Average Price * (Collection period/365)
Collection period;
71% take the discount which means that they pay in 15 days while the rest pay in 40.
= (71% * 15) + (29% * 40)
= 22.25 days
Accounts Receivable balance = 1,140 * 143 * (22.25/365)
= $9,937.52
Answer:
2.21%
Explanation:
The internal rate of return is the rate of return on the project where the present value of future cash flows equals the initial investment outlay. It is known as the break-even discount rate since, at IRR, the net present value is zero.
The IRR can be determined using the excel IRR function as shown thus:
=IRR(values)
values are the cash flows from years 0-4
Find attached excel file for IRR computation
Answer:
D. its complements.
Explanation:
A complement is a good or service used in conjuncture with another good. Therefore, if there is a decrease in the demand for a particular good, its complements will also see a decrease in demand. By the general supply and demand rule, an increase in the price of a good causes a decline in its demand and, therefore, causes a decline in demand for its complements.
