Full question:
In some states and localities, scalping is against the law although enforcement is spotty
A. Using supply/demand analysis and words, demonstrate what a weakly enforced antiscalping law would likely do to the price of tickets.
B. Using supply/demand analysis and words, demonstrate what a strongly enforced antiscalping law would likely do to the price of tickets
Answer and Explanation:
A. For the first scenario, a weakly enforced antiscalping law would still allow the resale of tickets as it is not enforced properly. Therefore it's effect on price would remain as though there were no laws restricting scalping( scalping: price increase created by artificial shortage and bulk resale of tickets) . See the attached diagram for the supply and demand curve and price increase as a result of a weak antiscalping law
B. For the second scenario, scalping has no effect on price as antiscalping laws are strong and therefore there is no scalping. Price remains the same and does not change.
In diagram A for first scenario price increases from p1 to p2 and quantity decreases from q1 to q2 to indicate increase in price and quantity decrease for shortage respectively. This shows the effect of scalping on the market with weak antiscalping laws
In diagram B, price and quantity remain the same to show strong antiscalping laws
Answer:
$10,000
Explanation:
We need to find the segment margin of the deparment, which is equal to annual contribution margin minus avoidable fixed costs:
Wallen Corporation
Annual contribution margin $80,000
Annual fixed costs $160,000
Unavoidable fixed costs $90,000
Avoidable fixed costs $70,000
Segment Margin = Annual contribution margin - avoidable fixed costs
= $80,000 - $70,000
= $10,000
Therefore, if the company eliminated this department, it would have a financial advantage of $10,000, equivalent to the deparment's current segment margin.
Answer:
The present value of your windfall if the appropriate discount rate is 10 percent is $5,562
Explanation:
Amount of Prize = $3,000,000
number of year = 66 years
Discount Rate = 10%
use following formula to calculate the Present value of Lottery prize
Present Value = Future value / ( 1 + discount rate )^number of years
PV = FV / ( 1 + r )^n
PV = $3,000,000 / ( 1 + 0.10 )^66
PV = $3,000,000 x ( 1 + 0.10 )^-66
PV = $3,000,000 x ( 1.10 )^-66
PV = $5,561.65
PV = $5,562
Answer:
The correct answer is $83230
Explanation:
Solution
Given that:
The Present worth of geometric series is shown below
= A *[1 - (1+g)^n /(1+i)^n] / (i-g)
Now,
The present cost of worth from EOY 5 to EOY 13 at EOY 4 = 7000 *[1 - (1+0.12)^9 /(1+0.15)^9] / (0.15-0.12)
Thus,
= 7000 *[1 - (1.12)^9 /(1.15)^9] / (0.03)
Which is,
= 7000 * 7.0572647
= 49400.85
Now, The NPW of all costs = 35000 + 7000*(P/A,15%,4) + 49400.85*(P/F,15%,4)
= 35000 + 7000*2.854978 + 49400.85*0.571753
= 83229.93
Therefore the sound improvement better result in a net present worth profit of how much to negate the costs is $83229.93 or 83230
Note: EOY = End of year.
Answer:
24.8 per hour
Explanation:
There are 3 workers and hence are three workstations. Consecutive activities are assigned to each workstation such that workload is as uniform as possible
Hence the time in each workstation (WS) is,
WS1 = 45+55+15 = 115 seconds
WS2 = 25+50+5+30 = 110 seconds
WS3 = 95+50 = 145 seconds
Workstation 3 has the highest processing time and hence is the bottleneck and determines the capacity of the process
Therefore capacity = 1/145 per second = 3600/145 per hour = 24.8 per hour
