Answer:
Total FV= $18,776.85
Explanation:
Giving the following information:
Interest rate= 10.3%
First deposit= $6,577
Second deposit= $9,769
<u>To calculate the future value, we need to use the following formula on each deposit:</u>
FV= PV*(1+i)^n
FV1= 6,577*1.103^2= 8,001.64
FV2= 9,769*1.103= 10,775.21
Total FV= $18,776.85
Answer:
The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.
Explanation:
Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.
There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.
Answer:
SUBSTITUTION BIAS
Explanation:
Substitution bias occurs when a customer decides to purchase a substitute of a good after the prices becomes cheaper than the goods they normally purchase. It rises as a problem in price index due to the fact that customers/buyers can decide to change or substitute goods at an instant because of changes in prices. In situations like this, customers tend to avoid the whole increase in prices by changing to cheaper substitutes. Substitution generally is a consumer changing or substituting an expensive product for a cheaper one due to changes in prices. This usually leads to inflation rate been overestimated or overstated.
Knowledge , pride and wisdom
Answer:
410 rooms and $22,550
Explanation:
The computation of the break even point and in dollars is shown below:
Break even point in units is
= Fixed cost ÷ (Selling price - variable cost)
where,
Fixed cost is
= Salaries + Utilities + Depreciation + Maintenance
= $6,600 + $1,100 + $900 + $420
= $9,020
And, the selling price is $55
And the variable cost is
= Maid service + other cost
= $22 + $11
= $33
So, the break even point in points is
= ($9,020) ÷ ($55 - $33)
= 410 rooms
And the break even point in dollars is
= 410 rooms × $55
= $22,550
