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Gre4nikov [31]
3 years ago
11

In this particular example, the optimal two-part tariff is a per-unit price of $1 and a fixed fee of $29. But notice that with t

his pricing structure, the Low-type consumer will not purchase any units of the product! Why was it optimal for the firm to set a pricing structure that intentionally shut the low-type consumer out of the market
Business
1 answer:
IRINA_888 [86]3 years ago
5 0

Answer:

The seller sets such high prices to increase his revenue. If he sets lower price, the revenue will also be less whereas high pricing will result in more revenue. Sellers sometimes set price as high as 800% above the cost. Though it discourages low type consumer but ensure high return by exploiting high paying capacity consumers. e.g. Apple (iPhone). Next it protects the seller from floating prices. Also by setting high price, sellers target high paying capacity consumers and increase their revenue manifold.

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You and two partners start a company. However, your partners play no role in running the company. You spend all your time managi
GalinKa [24]

Answer:

The correct answer is letter "D": Opportunity cost.

Explanation:

Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left  behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.

4 0
3 years ago
AB Builders, Inc., has 22-year bonds outstanding with a par value of $2,000 and a quoted price of 106.657. The bonds pay interes
Aloiza [94]

Answer:

7.32%

Explanation:

<em>The price of a bond is the present of its interest payment and the present value of redemption value (RV</em>

Present value of the Redemption Value (RV) =

FV× (1+r/2)^(-2×n)

FV- 2000, r- yield rate, r/2= 6.74%/2 = 3.37%, n-22

=2000× (1.0337)^(-2×22)

= 465.233

Present Value of the coupon payment =Price of bond - PV of RV

                          = (106.657% × 2000) - 465.233

                         =    $1667.90

PV of coupon payment= A × (1-(1+r)^(-2×n)

A- semiannual coupon payment, r -yield

   1667.90 = A × (1-(1.0337)^(-2*22))/0.0337

    1,667.90   = A × 22.7710

A = 1,667.90/22.7710

A= 73.246

Annual coupon payment = 2× 73.246=  146.493

Annual coupon rate = coupon payment/ face value

                                = (146.493/2,000 )× 100

                                = 7.32%

6 0
3 years ago
Read 2 more answers
An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in assoc
levacccp [35]

Answer:

<u>Licensing.</u>

Explanation:

Brand licensing occurs when there is an agreement between companies to use a brand and its characteristics such as name, logo and image, upon payment of royalts for the use.

It is a strategy that occurs on a large scale worldwide due to the ease of use and the added benefits of using a consolidated brand in the market, which already has an established public, and added value, which generates an economic strengthening in companies that use this strategy. as well as increased reliability and profitability.

7 0
3 years ago
The Bakery produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.50 pe
Ber [7]

Answer:

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

Explanation:

Flour needs to produces organic bread:

In July = 1,500 x 1/2 = 750 pounds

In August = 1,880 x 1/2 = 940 pounds

In September = 1,680 x 1/2 = 840 pounds  

In October = 1,560 x 1/2 = 780 pounds

Flour needs on hand at the end of:

July = 940 x 20% = 188 pounds

August = 840 x 20% = 168 pounds

September = 780 x 20% = 156 pounds

Total flour needs:

In July = 750 + 188 = 938 pounds

In August = 940 + 168 = 1,108 pounds

In September = 840 + 156 = 996 pounds  

In the third quarter = 3,042 pounds

The bakery pays $2.50 per pound of the organic flour used in its loaves.

In July = 938 pounds x $2.50 = $2,345

In August = 1,108 pounds $2.50 = $2,770

In September = 996 pounds  $2.50 = $2,490

In the third quarter = $7,605

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

7 0
3 years ago
Tampa Company has the following information: Total estimated manufacturing overhead costs $300,000 Total estimated direct labor
Anarel [89]

Answer: 33.3%

Explanation: The predetermined overhead rate allocates the manufacturing overhead to products. This is based on an estimate, as it is done at the beginning of the financial year. It uses an allocation base, which is usually a cost driver. A cost driver is a type of activity that causes a change in the cost of said activity. Examples of cost drivers usually used are: direct labour hours or machine hours.

The formula for calculating the predetermined overhead rate is:

Total estimated overhead costs ÷ total estimated overhead allocation base (estimated direct labour costs is used)

300 000 ÷ 900 000 = 0.33333 × 100 = 33.3%

6 0
3 years ago
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