Answer:
B. They make choices based on their self-interests.
Explanation:
A market economy can be defined as the economy of a country where by the government has a minimal influence or intervention on how the market operates.
A market economy is regulated by the individuals that owns the businesses in that economy. These individuals have the ability to direct resources that they need from production to their firms and businesses.
A market economy is largely or greatly influenced and regulated by the rate of supply and demand. Consumers in a market economy have to sometimes paid a high price for the goods and services that they require. Consumers make financial decisions in a market economy by making their choices based on self interests.
A market economy is a very competitive economy because
a. the demand of goods and services by consumers have increased therefore this results in an increase in production of goods and services.
b. The producers tend to high innovative when producing this goods and services required by the consumers.
In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.
Answer:
Price to be paid now = $52.89
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>
T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>
Price now = D/(1+r) + P×(1+r)
Dividend , r - rate of return, P -year-end price of stock
Dividend = 4.35, r-16%, P- 57
Price = 4.35/(1.16) + 57/(1.16)= $52.89
Price to be paid now = $52.89
Answer:
Gross pay
Explanation:
Gross pay is before all taxes and deductions. Therefore that value is greater than net pay which is after all taxes and deductions
Answer:
Monthly savings= $3,584.42
Explanation:
Giving the following information:
Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $4,600 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.
First, we need to find the final value.
FV= (4,600*12)*30= $1,656,000
Now, we can calculate the monthly deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.06/12= 0.005
n= 20*12= 240
A= (1,656,000*0.005)/[(1.005^240)-1]= 8,280/ 2.31= $3,584.42
Answer:
80 units
Explanation:
Given:
- Price: $25 we have: 100 units
- Price: $20, how many units to maximize the total utility
Let X is the number of units we need to find
As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:
$25 100 units of utility
$20 X
<=> 25X = 20*100
<=> X = 80 units
Hope it will find you well.
