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Paraphin [41]
3 years ago
13

A firm carries out price discrimination when it charges

Business
1 answer:
DedPeter [7]3 years ago
6 0
A firm carries out price discrimination when it charges <span>a lower price to consumers whose demand is more elastic. Price elasticity measures the </span>relationship change between the quantity demanded or purchase of a product when the price changes. Price discrimination is when a company changes the priced based on the person making the purchase of the product. 
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Which of the following statements correctly describes the effects of price​ controls? A. They cause demand disruptions and could
velikii [3]

Answer:

Option a and b

Option C                

Explanation:

A . In simple words, price control refers to the  limits on the rates that can be paid for good and services produced in a marketplace that are set up and imposed by central govt.

The purpose behind these restrictions may derive from the need to preserve the availability of products even through skills shortages, and to further delay inflation, or, instead, to help ensure a guaranteed minimum income as well for manufacturers of such products or to seek to obtain a decent living wage.

B. In simple words, due to printing of new currency the supply of money ion the  market would increase which will lead to inflation in the economy which will further lead to loss in value of the existing money in hand on the individuals.

3 0
3 years ago
Shoreline Insurance deposited $27,000 in an account paying 4 compounded daily on April 2 and deposited an additional $4,200 in t
nydimaria [60]

Answer:

Balance on balance on July 1 is $31490.67

Explanation:

given data

deposited P =  $27,000

time = April 2  to May 12 = 40 days

rate = 4 % = 0.04

solution

we get here first compound amount that is express as

amount = P × (1+\frac{r}{n})^{nt}     ...................1

put her value

amount = 27000 ×  (1+\frac{0.04}{365})^{(365\times \frac{40}{365})}  

amount = $27118.60

and

now we add here $4,200 in $27118.60 that will be

new principal P = $31318.60

and time t = 12 may to July 1 = 50 days

we get here amount that is put value in equation 1 we get

amount = $31318.60 ×  (1+\frac{0.04}{365})^{(365\times \frac{50}{365})}

solve it we get

amount = $31490.67

so that balance on balance on July 1 is $31490.67

5 0
3 years ago
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear belo
slamgirl [31]

Answer:

Net loss of $24,600

Explanation:

Sales              $773,900

Variable Expenses ($402,100)

Contribution Margin $371,800

Avoidable Expenses of B90D

Fixed Manufacturing Expenses        $186,000

Fixed Selling and Admin Expenses  %161,200

Total Avoidable expenses                 $347,200

If the product B90D is discontinued,the contribution margin of $371,800 will be lost by Wengel corporation and costs of $347,200 will be saved.

Therefore there will be net loss of $(371,800-347,200) $24,600 to the company if the product is discontinued.

3 0
2 years ago
__________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver
bagirrra123 [75]

Answer:

Option C (Drop-shippers) is the correct choice.

Explanation:

  • Drop shipping would be a technique of retail fulfillment where a store does not maintain the items in stock that it advertises or sell. Instead, whenever a store offering its products that used the drop shipping framework, it buys goods from either a third party and it may have delivered the product straightforwardly.
  • The products are owned by Drop shippers but they have never handled or executed them.

Some other alternatives given weren’t linked to the scenario in question. So, the alternative above is the right one.

6 0
3 years ago
Orchard Farms has a pretax cost of debt of 7.29 percent and a cost of equity of 16.3 percent. The firm uses the subjective appro
svp [43]

Answer: Net present value =  $446,556

Explanation:

First we'll compute the Weighted Average Cost of Capital :

Weighted Average Cost of Capital = K_{e} \times W_{e} + K_{d} \times W_{d}

= 0.163×\frac{1}{1.48} + 0.0729× (1 - 0.35 )× \frac{0.48}{1.48}  

= 0.1255

where;

K_{e} = Cost of equity

W_{e} = Proportion of equity

K_{d} = Cost of debt

W_{d} = Proportion of debt

Now, we'll compute the cost of capital using the following formula:

Cost of capital = Weighted Average Cost of Capital + adjustment factor

= 0.1255 + 0.0125

= 0.138 or 13.8%

∴ Net present value = Cash outflows - Total PV of cash flows

= $3,900,000 - $1,260,000 (Annuity value of 13.8% for 5 years)

= 3,900,000 - 1260000 \times \frac{[1-(1+13.8)^{-5}]}{13.8}

= $3,900,000 - $3,453,444

= $446,556

Therefore, the correct answer is option(b).

5 0
3 years ago
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