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3 years ago

A can of soda costs $0.75 in the United States and 12 pesos in Mexico.

Business

1 answer:

allsm [11]3 years ago

7 0

Answer:

a) 16 pesos per dollar

b) 32 pesos per dollar

Explanation:

If purchase-power parity holds, the exchange rate should guarantee that the can of sold would cost the same dollar amount both in the United States and in Mexico. The exchange rate is:

$R=\frac{12/ pesos}{\$0.75}\\R=\frac{16/ pesos}{\$}$

If the price of the soda doubles and the parity remains, the exchange rate also double:

$R'= 2*R\\R'=\frac{32/ pesos}{\$}$

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Under a flexible-price monetary approach to the exchange rate Group of answer choices when the domestic money supply falls, the

Anastaziya [24]

Answer:

when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

The flexible-price monetary model was developed by Frenkel and Mussa in 1976 and it states that the prices of goods are flexible while the purchasing power parity (PPP) is always constant.

Under a flexible-price monetary approach to the exchange rate when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

6 0

3 years ago

Jonathan is considering opening a shop for online baseball memorabilia. He has two options. He can build the web site himself an

Lynna [10]

Answer:

(a) Fixed cost = $2000 + $180 (15*12) = 2180

(b) Unit price = $4 + $0.5 (price increase) = $4.5

(c) Unit variable cost = $3

(d) First option

(e) Second option

Explanation:

For (d) we have, first option gives (1800) as 200*(4-3) -2000= -1800 and second option give (1880) as 200*(4.5-3) – 2180.

So, he’d prefer first option because of less loss associated with it.

For (e) we have, first option gives (1300) as 700(4-3) -2000 = -1300 and second option gives (1130) because 700(4.5-3) – 2180 = -1130.

So, he would prefer second option because of less loss associated.

3 0

4 years ago

Read 2 more answers

Six months ago, you purchased 100 shares of stock in ABC Co. at a price of $43.89 a share. ABC stock pays a quarterly dividend o

Leni [432]

Answer:

$144

Explanation:

$45.13 - $43.89 = $1.24 profit each share

$1.24*100 = $124

$.10×100 = $10/quarter

2 quarters = $20

$124 + $20 = $144

6 0

2 years ago

On January 1, 2018, Earnest Company purchased equipment and signed a sixminusyear mortgage note for $ 110 comma 000 at 15%. Th

GarryVolchara [31]

Answer:

D. $ 16 comma 619

Explanation:

Mortgage Installment is compromised of the interest and principal payment. The principal value is calculated by deducting the interest on opening balance of mortgage from installment of the year.

Mortgage Amortization schedule

Date Installment Interest Principal Balance

January 1, 2018 110,000

January 1, 2019 29,066 (110,000x15%) 16500 12,566 97,434

January 1, 2020 29,066 (97,434x15%) 14,615 14,451 82,983

January 1, 2021 29,066 (82,983x15%) 12,447 16,619 66,364

7 0

4 years ago

A portfolio consists of 265 shares of Stock C that sells for $50 and 230 shares of Stock D that sells for $25. What is the portf

kakasveta [241]

Answer:Weight of Stock C=0.6974----- E

Explanation:

The Value of a stock is given as No. of Shares x Share Price

Therefore

Value of C = No. of Shares OF C x Share Price of Stock C= 265 x $50= $13,250

Value of D = No. of Shares of D x Share Price of Stock D= 230 x $25 = $5,750

Total value of Portfolio= Value of C + Value of D = $13,250 +$5,750 =$19,000

Also,

Weight of stock = value of stock/Total value

Therefore

Weight of Stock C = Value of C / Total Portfolio Value =

$13,250 / $19,000=0.69736 = 0.6974

6 0

3 years ago