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jenyasd209 [6]
3 years ago
6

Half of all potential customers would pay $10 for your product but half would only pay $8 but you cannot tell them apart. Your m

arginal costs are $4. If you set the price at $8, the expected profit is:a)$3 b)$4 c)$5 d)$6
Business
1 answer:
IgorLugansk [536]3 years ago
5 0

Answer:

The correct answer is b) $4.

Explanation:

This is simple problem, it requires us to to tell expected profit. We know that profit is equal to revenue minus expense. So in question revenue is given as $ 8 and cost is $ 4. So the profit would be

Profit = Revenue -Cost = 8 - 4 = $ 4

You might be interested in
The mean width of 12 iPads is 13 cm. The mean width of 8 Kindles is 12 cm. 2 pts
MissTica

Answer:

see below

Explanation:

Mean is the average of a set of data or numbers. if the mean is 13, it implies that on average, the width of one iPad is 13cm.

a). Width of 12 iPads is 13cm.

Total width will be 12 x 13

= 156 cm

b). Total width of candles

mean of 8 candles is 12 cm

total width = 8 x 12

=96 cm

c).  mean of iPads and candles

=width of iPads + width of candles divided by total of candles and iPads

= (156cm + 96cm) / (12 + 8)

=252 /20

=12.6 cm

7 0
3 years ago
A first-round draft choice quarterback has been signed to a three-year, $10 million contract. The details provide for an immedia
inessss [21]

Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

= $1 + $2 million ÷ (1 + 10%) + ($3 million ÷ 1.10)^2  + ($4 million ÷ 1.10)^3

= $1 million + $1.82 million + $2.48 million + $3.01 million

= $8.31 million

No the package would not worth $10 million as its present value is $8.31 million

7 0
3 years ago
You are earning $40,000 per year as a branch manager at Dunkin Donuts. You are planning on leaving your job and going back to co
sergij07 [2.7K]

Answer:

It increases the opportunity cost because you are foregoing more money for college.

Explanation:

Opportunity cost is the benefit profit, or value of something that is missed or given up when an individual chooses one alternative over another.  

The 10% rise in salary offered by the branch manager increases the opportunity cost of going to college. This is because the higher cost (money) you could have earned by not going to college is foregone.

3 0
3 years ago
In the preparation of departmental income statements, the preparer completes the following steps in the following order: (1 poin
olasank [31]

Answer:

The correct answer is a. Identify direct expenses; allocate indirect expenses; allocate service department expenses.

Explanation:

Selling costs are the costs incurred by a company to market the products or services, such as the salary of the sellers, commissions, gasoline of the trucks that distribute the orders, advertising, etc. Administrative expenses are the costs incurred by a company to manage its operations. Examples of these expenses would be the salary of the accountant, the surveillance expenses, the expenses for the cleaning service, stationery, salaries and benefits of the administrative staff of the company, etc. Some concepts can be shared, such as office rent. If there are sales and administration departments in the same building; The total expenditure must be applied to the two departments according to the space each of them uses (square meters) or at an estimated percentage; for the  therefore, of the total rent one part would be selling expenses and another part administration expenses.

3 0
4 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
yKpoI14uk [10]

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

5 0
3 years ago
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