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Sergio039 [100]
3 years ago
15

Suppose Lois usually buys two cups of coffee for two dollars each and one scone for two dollars each. If the price of scones fal

ls to one dollar each and she now buys two cups of coffee and two scones, this illustrates the:_______.
A) total utility effect.
B) marginal rate of substitution.
C) substitution effect.
D) real-income effect.
Business
1 answer:
777dan777 [17]3 years ago
4 0

Answer:

The correct answer is D. Real income effect.

Explanation:

Real income is defined as the monetary income of an individual, taking into account the effect of inflation. For example, if a person's nominal salary increases by 10% in one year, and inflation is 6% in that year, the actual income will have increased 4% in that year.

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The ABC Company expects stock prices to decrease. The current stock price is $96. The company purchases a put option, with exerc
Talja [164]

Answer:

Payoff = $2 per share.

Explanation:

In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.

Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.

<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>

6 0
3 years ago
Which of the following types of work would a company be most likely to preform through outsourcing?
Goryan [66]

Answer:

B

Explanation:

A consistent, predictable amount of work

5 0
3 years ago
Read 2 more answers
Whispering is a corporation that sells breakfast cereal. Based on the accounts listed below, what are Whispering's total trade r
Leto [7]

Answer:

the total trade receivable is $12,300

Explanation:

The computation of the total trade receivable is shown below:

= note due from customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales

= $1,570 + $9,730 + $1,000

= $12,300

Hence, the total trade receivable is $12,300

The other items would not be considered as it is not a trade receivables

8 0
3 years ago
The primary benefit of a MINIMAX objective function is
sladkih [1.3K]

Answer:

The correct answer is letter "C": it yields a larger variety of solutions than generally available using an LP method.

Explanation:

In Goal Programming (GP), the MINIMAX objective aims to minimize the maximum deviation from any type of objective. This approach carries a larger number of solutions compared to the Linear Programming (LP) method which mainly focuses on assigning more weight to each goal in the objective function.

4 0
3 years ago
By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on
Bond [772]

Answer:

ROA= 10%  TA = 2.000.000  

ROA=12%  TA         = 1.666.667

Reducction in assets    333.333

Explanation:

ROA=Net income/Average Total Assets

ROA = (net income / sales) x (sales / Total Assets)

ROA = Margin x Average total assets

10%=5%X(4000000/TA) 2,0 = 4000000/TA

12%=5%X(4000000/TA)  2,4 = 4000000/TA

ROA= 10%  TA = 2.000.000

ROA=12%  TA = 1.666.667

8 0
3 years ago
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