Voluntary exchange refers to an act of trading between individuals that makes both parties to the trade subjectively better off.

Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 29 comm

zvonat [6]

Answer:

The cost of the rebate is that Honda will sell more vehicles and lose on each additional vehicle sold.

Explanation:

The cost-benefit analysis is a systematic approach that involves finding the marginal costs and marginal benefits associated with a particular decision, and then compare the benefits against the costs to determine whether the decision should be pursued.

To determine the costs and benefits in terms of incremental profits;

Benefit = Profit of $5,090 per vehicle × 13,500 (53200 - 39700) additional vehicles sold = $68,715,000

The cost of the rebate is that Honda will make less on the vehicles it would have sold:

Cost = Loss of $1,800 per vehicle × 39,700 vehicles that would have sold without rebate = $71,460,000.

There, Benefit - Cost = $ (68,715,000 - 71,460,000) = - $2,745,000 and offering the rebate does not look attractive.

The rebate being offered is not a good idea as the cost outweighs the benefit.

5 0

3 years ago

What do you mean by public service?

Inessa05 [86]

A public service is something provided by the government or another official entity for the benefit of all members of a society or community, such as health care, transportation, or garbage management.

Any service designed to meet the specific needs of the total population of a community is considered a public service. People who live in a government jurisdiction can access public services directly from public sector organizations or through public financing of private companies or nonprofits (or even as provided by family households, though terminology may differ depending on context). Other public services are provided on behalf of or in the best interests of the citizens of a government. The phrase refers to a social consensus .

Learn more about public service here.

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6 0

1 year ago

In 1916, the ford motor company sold 500,000 model t fords at a price of $440. henry ford believed that he could increase sal

quester [9]

For the answer to the question above,
we must use this formula,
(New - Old)/ (Ave. of New and Old)

In this case,
501k -500k/(500,500(which is the ave. of the two.
Then it would be 1k/500,500

Then the answer would be .0020
Then
-1.439.5/439.5 because this is the average of the two.
so the answer would be .0023

Then finally divide the rate on change of quantity by the rate of change in price which is
0.002/-0.0023

Then the answer would be -.87

So the elasticity on the demand of model T is .87 ( remove the negative because elasticity is always positive.)

6 0

3 years ago

The App Store needs to raise $2.8 million for expansion. The firm wants to raise this money by selling 20-year, zero-coupon bond

DENIUS [597]

Answer:

10,064 bonds

Explanation:

Given:

Amount to be raised = $2,800,000

Par value (FV) = $1,000

Maturity (nper) = 20×2 = 40 periods

Yield (rate) = 6.49 ÷ 2 = 3.245% or 0.03245

Coupon payment is 0 as it's a zero coupon bond.

Assume it's compounded semi-annually.

Calculate the price of the bond today using spreadsheet function =PV(rate,nper,pmt,FV)

Price of bond is $278.23

PV is negative as it's a cash outflow.

Number of bonds to be sold = Total amount to be raised ÷ Price of bond

= 2,800,000 ÷ 278.23

= 10,064 bonds

Company should sell 10,064 bonds to raise $2.8 million

5 0

3 years ago

Which type of organization expects important decisions to be made by top-level managers?

tankabanditka [31]

Answer:

In the centralized organizations which mostly includes banks, army corporations, etc because in these organisation the policies are set by the top management and the lower level management have to follow their instructions. I remember when the japanese Cheif Executive was appointed as the CEO of Sony America the whole of the workers went to strike against him because his attitude was centralised oriented organization which he was used to in Japan and in America people love to work in decentralized organisation. So basically in centralised organisation, lower management are delivered less responsibilities regarding making decisions. They are only accountable for doing the job according to the top management.

6 0

3 years ago