Monopolies engage in price discrimination possible because they can get away with it.
A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay.
Consumers must pay the price of said product because they can not get the same product from any other seller.
Answer:
A) $800,000
Explanation:
Since the current reserve ratio is 20%, and the bank has no excess reserves, then the maximum it can lend if it receives $1 is $800,000.
The bank has currently $50 million in deposits and $10 million in reserves ($6 million in cash and $4 million in the Fed), so its reserves are exactly 20% of its total deposits. So if any new deposits are received, the bank will have to keep as reserves 20% of it (= $1,000,000 x 20% = $200,000).
This type of banking system is called the fractional banking system because banks are only required to keep a fraction of the money they receive as deposits and they can lend the rest to other clients.
Answer:
Option (b) is correct.
Explanation:
Sale of share = NQOs received × No. of shares × Selling price per share
= 10 × 8 × $22
= $1,760
Gain realised:
= Sale of share - Basis
= $1,760 - [NQOs received × No. of shares × Selling price per share at $15]
= $1,760 - [10 × 8 × $15]
= $1,760 - $1,200
= $560
Tax paid = Gain realised × preferential rate
= $560 × 15%
= $84
Answer:
Option (A) is correct.
Explanation:
Cash flow from Operating Activities:
= Net income + (Beginning Accounts receivable - Ending Accounts receivable) + (Ending Accounts payable - Beginning Accounts payable)
= $45,000 + ($23,000 - $22,000) + ($28,000 - $26,000)
= $45,000 + $1,000 + $2,000
= $48,000
Therefore, Bird Brain's cash flows from operating activities would be $48,000.
