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3 years ago

Why do government regulations lead to higher prices for consumers?

1 answer:

6 0

Government regulations mandate production or testing requirements to ensure the quality and safety of products. This typically means specialized equipment is needed to produce the product, more employees are needed to perform quality control tests, and possibly higher quality raw materials must be used. The cost of producing the product increases with the higher quality materials, new equipment acquisition, and additional paid employee time. These added production costs are then passed on to the consumer in the final price of the product.

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Muriel buys a $2,000 savings bond with a 4% coupon and 20 years to maturity. How much interest will she earn over the life of th

irina1246 [14]

To solve: use the simple interest calculation.

interest earned over the life of the bond = (bond price)(coupon rate)(years)
= (2,000)(0.04)(20)
= $1,600

So after 20 years on a 4% coupon bond starting at $2,000 Muriel will earn $1,600 in interest.

3 0

3 years ago

You want to have $18,000 in 9 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much wil

stiks02 [169]

Answer:

$10,503.59

Explanation:

This question requires us to find how much you have to deposit today if:

Fv = 18,000

Time = 9 years

PV= fv/(1 + i)^n

N = 9 X 12 = 108

I/y = 0.5%

PV = $18,000 / 1.005^108

= $10,503.59

Therefore what you have to deposit today is $10,503.59

5 0

3 years ago

When making a decision, only relevant items are included in the analysis of the alternatives when using ______.

sergeinik [125]

Answer:

Explanation:

When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.

7 0

2 years ago

A machine that cost $225,000 has an estimated residual value of $15,000 and an estimated useful life of 15,000 machine hours. Th

algol [13]

Answer:

$57,000

Explanation:

Step 1 : Depreciation Rate

Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production

therefore,

Depreciation Rate = $14.00 per machine hour

Step 2 : Depreciation expenses

Depreciation expense = Depreciation Rate x Annual production

therefore

Year 1 = $42,000

Year 2 = $56,000

Year 3 = $70,000

Total = $168,000

Step 3 : Book Value

Book Value = Cost - Accumulated Depreciation

= $225,000 - $168,000

= $57,000

Conclusion :

book value at the end of year 3 is $57,000

8 0

3 years ago

A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t

maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

This is bait pricing strategy.

3 0

3 years ago