What comes to mind when you hear stock marker

15. Cole is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Cole has only $20 to spe

atroni [7]

Answer: Option (A) is correct.

Explanation:

Price of good A = Price of Good B = $2

Income = $20

Therefore, from the above information, the budget constraint is as follows:

2A + 2B = 20

Both goods have an intercept value of 10 with A=4 & B=6 and the slope of indifference curve shows that marginal rate of substitution (MRS) is falling. This means that as we consume more and more units of a good, the utility obtained from that good decreases.

The utility derived from good B decreases as we consume more and more units of a good, since it is in larger proximity to the intercepts value.

Therefore, the consumer will pay to purchase more of good A as compared to good B at this point.

5 0

3 years ago

George has considered selling franchises of his very successful hardware store. However, he is concerned that the franchisees wi

Artist 52 [7]

Answer:

The correct answer is Through the franchise agreement, he can ensure that the new stores are operated according to his own standards.

Explanation:

The Franchise Agreement is a binding contract that sets out in detail the responsibilities and expectations for the franchisor and the franchisee.

You have to keep in mind that Franchise Agreements are written to be generally more advantageous for the franchisor. Once signed you are legally bound to uphold all the provisions of the Settlement, therefore it is essential that your attorney has reviewed the contract and explained everything correctly to you in plain language and not in specific terms that may not be easy to understand.

Before signing, if any verbal promises have been made, make sure they are included in writing in the Agreement. Once signed, the Franchise Agreement determines your relationship with the franchisor, and any disagreement or misunderstanding will be subject to the terms of the Agreement.

Since it is a binding contract, there are certain critical elements found in all business contracts and others that are unique to franchising. Here are some aspects of the contract that you and your lawyer should review carefully to make sure you understand all that it entails.

7 0

3 years ago

Suppose you are taking a luxury tour of a city in a limousine. With just a few passengers, the tour is pleasant and everyone has

melisa1 [442]

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is incomplete and lacks necessary data about the number of passengers and total utilities. However, I have found a similar question on the internet and will using its data to solve for this problem. Besides that, I have attached the data in the attachment that I am using in this question.

Solution:

First of all, we are asked to calculate the marginal utility. In order to do that, we need to know the formula for Marginal Utility.

Formula:

Marginal Utility = TU2 - TU1/C2-C1

Where,

MU = Marginal Utility

TU = Total Utility

C = Number of units

So, according to the data provided.

For 0 number of passengers:

MU(0) = 0

For 2 number of passengers:

MU(2) = (100 - 0)/(2-0) = 100/2 = 50

Similarly,

For 4 number of passengers:

MU(4)=(225-100)/(4-2)= (125/2) = 62.5

For 6 number of passengers:

MU(6)=(355-225)/(6-4) = (130/2) = 65

For 8 number of passengers:

MU(8)=(400-355)/(8-6) = (45/2) = 22.5

For 10 number of passengers:

MU(10)=(425-400)/(10-8)= (25/2) = 12.5

6 0

3 years ago

Lefty Consultants currently has 300,000 shares of common outstanding. Firm value net of debt is $3,450,000. The firm has warrant

s2008m [1.1K]

Answer: 60000

Explanation:

We will calculate the share price post warrant issues which will be:

= $10 + $1.25

= $11.25

Then, let the number of warrant issues is represented by x. Slotting this into the formula for the share price post warrant issued will go thus:

11.25 = (3450000 + 10×x) / (300000 + X)

3375000 + 11.25x = 3450000 + 10x

Collect like terms

11.25x - 10x = 3450000 - 3375000

1.25x = 75000

x = 75000/1.25

x = 60,000

Therefore, the number of warrant issued is 60,000

8 0

4 years ago

Lydia Hagberg went to her bank, California Federal Bank, FSB, to cash a check made out to her by Smith Barney (SB), an investmen

user100 [1]

Answer:

Yes the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contracts the police to report suspected criminal activity

Explanation:

Absolute priviledge for communication is the provision that covers a person from legal action on grounds of defamation for statements made. Under certain circumstances a person can make defamatory statements and be immune from legal action.

In this scenario Lydia Harberg went to California Federal Bank to cash a check that was suspected to be fake.

Nolene Showalter contacted SB to confirm. Based on the information provided at that time, the check was confirmed to be fake. The implication was that a fraud was being perpetrated.

So his action of calling the police is justified. SB only verified they gave out wrong information the first time

8 0

4 years ago