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vaieri [72.5K]
2 years ago
5

A local swimming pool charges nonmember $10 per visit. If you join the pool, you can swim for $5 per visit but you have to pay a

n annual fee of F. Use an optimal choice model to find the value of F such that you are indifferent between joining and not joining. Suppose that the pool charged you exactly that F. Would you go to the pool more or fewer times than if you did not join? For simplicity, assume that the price of all other goods is $1.
Business
1 answer:
ratelena [41]2 years ago
7 0

Answer:

The answer is below

Explanation:

Using an optimal choice model to find the value of F such that you are indifferent between joining and not joining.

Let N be the number of visits per year

1) N-number of visits per year 10N=5N+F

Given that 10N=5N+F

Hence F=5N

F = 5N

2) Therefore, Would I go to the pool more or fewer times than if i did not join?

Then, if F is fixed and I join the local Swimmng pool member, I would go more times.

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Question 7 (Multiple Choice Worth 4 points)
Stolb23 [73]

In a situation wherein Country Y has a progressive tax system for income, with no credits or deductions, a CEO earning $2.5 million per year would pay the most as a percentage of income in the country Y. Therefore, the option D holds true.

<h3>What is the significance of a progressive tax system?</h3>

A progressive tax system can be referred to or considered as a system wherein the percentage of tax to be levied increases with an increase in the total taxable income for an individual. The rates of taxation under this system are defined under percentage.

In the situation given above, when a CEO in country Y earns $2.5 million, i.e., more than any other person mentioned above, he will be the one who will have to pay the most taxes as a part of percentage of his income.

Therefore, the option D holds true and states regarding the significance of the progressive tax system.

Learn more about progressive tax system here:

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4 0
1 year ago
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Rachel's Recordings reported net income of $270,000. Beginning balances in Accounts Receivable and Accounts Payable were $17,000
Cloud [144]

Answer:

Cash flow from operating activities 284,500

Explanation:

net income                                    270,000

change in AR

17,000- 9,500  =           7,500(A)

change in AP

28,000 - 21,000 =        7.,000(B)

total change in working capital        14,500

Cash flow from operating activities 284,500

(A)

The account receivable decrease over time this means the account were collected, whch increase cash

(B)

The account payable increase, which means the company receive cash or delay the payment of cash for this period of time. Therefore, the cash increase.

3 0
3 years ago
Sale of partnership interestThe partners in the Biz Partnership have agreed that partner Mandy may sell her $100,000 equity in t
ddd [48]

Answer:

Mandy Capital                                                Debit: 100,000

Brittney Capital                                               Credit: 100,000

Explanation:

The journal entry will be recorded as above. Mandy sold equity worth $100,000, so we will record the entry on transfer of equity by the equity value sold. Now, for this equity value both partners can decide the amount in which one will sell to other, which in this scenario is $85,000.

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3 years ago
J Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%.
viva [34]

Answer:

Explanation:

The time (T) = 6 months = 6/12 years  = 0.5 years

Interest rate (r) = 6% = 0.06

The stock is priced [S(0)] = $36.50

The price the stock sells at 6 months (V_c) = $3.20

European call (K) = $35

The price (P) is given by:

P=V_c+K.e^{-rT}-S(0)+Dividends\\But, Dividends = 0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Therefore, P=V_c+K.e^{-rT}-S(0)+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Substituting:\\P=3.2+35*e^{-0.06*0.5}-36.5+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\P=3.2+33.9656-36.5+0.4926+0.4852\\P=1.64

The price of a 6-month, $35.00 strike put option is $1.65

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3 years ago
A manufacturer replenishes their packaging materials according to the economic order quantity model. They use 25,000 cases of pa
Sergio [31]

Answer:

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Explanation:

25,000/500 = 50

50*12=600

500*12=6000

50*6000=300000

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