The entrepreneurial qualities that helps any businessman to be successful in his or her business are as follows:
1) The quality of goods and services should be maintained.
2) The information regarding the product needs to be disseminated to the public.
3) Finance and funding should be taken care of to avoid illegal profits and bankruptcy.
4) True and fair means of practices should be followed.
5) The entrepreneur should be accountable and responsible for the services provided by him.
Answer:
A) = c.) To each customer based on his or her willingness and ability to pay
B) = a. A hotel offering a promotion where customers submit the price they are willing to pay for a one-night stay
Explanation:
A)
First degree price discrimination is also known as the perfect price discrimination. The firm here is able to charge a different price to each individual, taking advantage of each persons' consumer surplus and maximizing the producer surplus. Therefore the correct answer is C for the first part.
B)
Since the hotel is able to charge each individual a separate price as per each consumers' own willingness to pay thus this is an example of perfect price discrimination as each individual will be paying a separate price.
Hope that helps.
The correct answer is B) Doormart signed an agreement with Wallmart allowing both firms to engage in predatory pricing.
Wallmart is accused of predatory pricing by Doormart. Wallmart could defend itself against this accusation. The option that would not be one of their arguments would be "Doormart signed an agreement with Wallmart allowing both firms to engage in predatory pricing."
This option would be inconceivable because laws and regulations prohibit companies to sign an agreement that could be against the benefits of the American consumer. A situation like that could seem like an agreement "behind doors" that also hampers or hurts other competitors in the industry. Predatory pricing is an illegal practice aimed at eliminating other competitors in the market by setting very low prices. Something like this could create monopolies.
Answer:
Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.
Explanation:
Let A represent the number of apples bought and B represent the number of bananas bought. Therefore since Olivia has $4 to spend:
0.2A + 0.25B = 4 (1)
Also, the tangency condition can be used to find the optimal amount of A to relative to B. It is give as:
Put B = 0.8A in equation 1:
0.2A + 0.25(0.8A) = 4
0.2A + 0.2A = 4
0.4A = 4
A = 10
B = 0.8(A) = 0.8(10) = 8
Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.
Answer:
B
Explanation:
Beta of a portfolio is given by adding the some of the beta of each stock multiplied by the weights
Overall investment equals $50000+$50000=$100000
which gives Wx=50000/100000=0.5
Wy=50000/100000=0.5
Bp=Wx*Bx)+(Wy*By)
=(0.5*1.6)+(0.5*1.6)
=1.6
The expected return calculated by sum of weight multiplied by expected return
Er=(0.5*15%)+(0.5*15%)
=15%
The portfolio has a beta equal to 1.6 and expected return equal to 15%