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Papessa [141]
3 years ago
7

Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are​ sel

ling, but buyers do not.Buyers know that there is a 40​% chance of getting a​ "lemon", a low quality used car. A high quality used car is worth​ $30,000, and a low quality used car is worth​ $15,000.Based on this​ probability, the most that a buyer would be willing to pay for a used car is ​$
Business
1 answer:
denis23 [38]3 years ago
8 0

Answer:

A buyer would be willing to pay at most $24,000.

Explanation:

There is a 40% chance of getting low quality cars.

Value of high quality car is $30,000.

Value of low quality car is $15,000.

Price of car that buyer will be willing to pay

=40% of lower quality+60% of higher quality

=40% of $15,000+60% of $30,000

=0.4*15,000+0.6*30,000

=$6,000+$18,000

=$24,000

So, the buyers will be willing to pay a maximum value of $24,000.

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Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university
Klio2033 [76]

Answer: $611.57 or $612 rounded to nearest dollar.

Explanation:

She would have to make a constant payment per quarter which makes it an annuity.

The $10,000 is the present value of the annuity.

The quarters remaining are = 5 years * 4 = 20 quarters

Quarterly interest = 8%/4 = 2%

10,000 = Annuity * Present Value of Annuity factor, 20 periods, 2%

10,000 = Annuity * 16.3514

Annuity = 10,000/16.3514

= $611.57

6 0
3 years ago
Companies must prioritize and determine the performance dimensions on which they will focus and excel. Each performance dimensio
gladu [14]

Answer:

Quality.

Explanation:

Garvin´s definitions of quality based on the perspective of the viewer (perception is reality):

-Transcendent. quality is intuitively understood but nearly impossible to communicate.

-Product based. quality is found in the components and attributes of a product.

-User based. if the costumer is satisfied, the product has good quality.

-Manufacturing based. if the products conforms to desing specifications, it has good quality.

-Value based. if the product is perceived as providing good value for price, it has a good quality.

Garvin´s dimensions of product quality are:

Performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality.

These different dimensions of quality are not mutually exclusive.

6 0
3 years ago
Suppose that Jack and Sophia and Hal enter into an agreement for the sale of the business without the non-competition agreement.
natta225 [31]

Answer:

The answer is: C) If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

Explanation:

Non competition clause (NCC) is a legal contract that binds one party to not work for or start a rival company (in the same trade) that will compete against the other party.

In this case, Jack said he would probably agree to sign a NCC if they paid him $100,000 more, but he never said he would sign for sure the NCC. So Jack can refuse to sign the NCC and reject the extra $100,000. The selling contract would still be valid, it was never stated that if no NCC was signed, then the contract would be dismissed.  

7 0
3 years ago
Marketing intermediaries add value and create efficiencies by:
Kisachek [45]

Marketing intermediaries add value and create efficiencies by:

a. providing convenience.

c. reducing the number of exchanges between producers & buyers

d. performing necessary activities such as storage and transportation

<h3>What are marketing intermediaries?</h3>

Marketing intermediaries can be defined as organizations that are saddled with the responsibility of transporting goods and services from producers (manufacturers) to businesses, and from businesses to consumers (B2C).

This ultimately implies that, marketing intermediaries are able to add value and create efficiencies by providing convenience and performing activities such as transportation and storage.

Read more on marketing intermediaries here: brainly.com/question/17367610

#SPJ1

Complete Question:

Marketing intermediaries add value and create efficiencies by:

a. providing convenience

b. eliminating activities such as transportation & storage

c. reducing the number of exchanges between producers & buyers

d. Performing necessary activities such as storage and transportation

6 0
2 years ago
Read 2 more answers
Calliope Corp. has outstanding 400 shares of common stock of which Yak, So, Day, and Ren each own 100 shares or 25 percent. No s
Karo-lina-s [1.5K]

Answer:

Day

Explanation:

To qualify as an exchange, a redemption must be substantially disproportionate. It should be below 80% of what it was before the redemption

They had 25% 80% would be 20% so those shareholders below 20% will be considered exchange:

Yak: 100 - 34 = 66   then 66 / 300 = 22%

So:  100 - 24 = 76   then  76/300 = 25.33%

Day 100 - 42 = 58 then 58/300 = 19.33%

Dya qualifies as decrease below 80% of their previous percentage of owership

8 0
3 years ago
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