The market demand curve would be 1000 - 0.125Q.
<h3>How to calculate the demand curve?</h3>
It should be noted that the market demand curve will be the sum of the individual demand curve.
The market demand curve will be calculated thus. Mary’s demand curve is 5P = 5000 – 1.25QM. Here, p = 1000 - 0.25QM
Jack’s demand curve for donuts is given by P = 1000 – 0.5QJ. Helen’s demand curve is given by QH = 2000 – 2P. This will be P = 1000 - 0.5QH.
The slope will be:
= 0.5 × 0.25
= 0.15
The demand function of Jack and Helen are the same. The demand curve will be 1000 - 0.125Q.
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Answer:
c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due
Explanation:
Considering the following statements:
- the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
- The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
- In case of perpetuity the times is not limited, hence would get the higher return.
Answer:
17.76%
Explanation:
The computation of the time-weighted return on your investment is given below
But before that we have to do the following calculations
Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%
Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%
Now the time weighted return is
(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)
= 1.1412 × 1.2151
= √1.3867 - 1
= 17.76%
As part of their marketing strategy, companies will identify a target market, a group of similar people whose interest the company wants to gain.
<h3>What is a target market?</h3>
A target market is a group of customers which could be in the same area that have interest in a particular product.
They are usually identified as the most likely buyers of a product or service.
Therefore, as part of their marketing strategy, companies need to identify a target market, a group of similar people whose.
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Answer:
A) has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows
Explanation:
The amortization is an accounting method to match the difference in the nominal interest rate of bonds with the real interest rate the bond is yielding.
Th cash flow statment will just recognize the cash proceeds, which are calculate base on the face value, regardless of the premium or discount in the bond.
