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Tems11 [23]
3 years ago
12

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as muc

h as $6,000 for a good used car but only $1,000 for a lemon. Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each. Buyers cannot tell if a used car is reliable or is a lemon. Based on this information, what is the likely outcome in the market for used cars
Business
1 answer:
Viktor [21]3 years ago
5 0

Answer:

Based on the given information, the mostly likely outcome in the market for used​ cars is, sellers of good used cars will drop out of the market.

Explanation:

From the above mentioned scenario, we can figure out that in the marker of used cars, good used cars have a higher pay and value as compared to the bad used cars. But when it comes to buyers, they cannot really make a differentiation between whether the used cars are well grounded or lemon. So in that case, there is a likelihood of dropping good used cars out of market. This is mainly because when buyers cannot judge the reliability of an item, chances are that the item will drop out.

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Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and
densk [106]

Answer:

Y=38.8

Y will increase by 38.8

Y=246+38.8

Y=284.8

Explanation:

Y=A. F(K, L)

Y=A. K^0.3, L^0.7

Then

Y=246

A=1

K=2000

N or L=100

Solutions

200=1(2000^0.3, 100^0.7)

Now the question says both k & N are increased by 0.20

Therefore

Y=1(2400^0.3, 120^0.7)

Y=1(10.3 + 28.5)

Y=38.8

4 0
3 years ago
Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a limited liability compa
lozanna [386]

Answer:

Explanation:Answer:

Explanation: Characteristics of a proprietorship:

1. Owned by single individual

2. Less regulated Subject to unlimited liability

3. Has unlimited life Subject to lower income taxes

B.

Michael founded and operated a wedding planning agency, which specialized in celebrity weddings. When he died, his business was dissolved because there was no plan for control after his death. Sole proprietor

DDX Co. is a shipping company. Tyler owned 1,000 shares of DDX stock. He found better opportunities and sold his entire stake in DDX to another investor. Limited liability company.

Jackson and his friend Shirley run a carpet cleaning business. They distribute the profits proportionately and file their individual taxes. Partnership

Tyler, Jackson, and Jose own an accounting firm in San Francisco. All share in the profits of the firm proportionately and file taxes at an individual level. According to their agreement, none of the owners will be held personally liable for the accounting firm's debt. Limited partnership

Businesses in the form of corporations offer their owners several advantages, but the benefits come at a price. For instance, corporations are required to create a charter, set bylaws, and file mandatory reports with state and federal authorities, which can get expensive and time consuming. The filing document, which requires the company to state: (1) the name of the proposed corporation, (2) types of activities the company will be involved in, (3) amount of capital stock, (4) number of directors, and (5) names and addresses of the directors, is called the corporate limited liability company

6 0
3 years ago
Researchers recruited 20 volunteers - 8 men and 12 women - to take part in an experiment. they randomly assigned the subjects in
SVETLANKA909090 [29]
Yes because there were only 8 men
5 0
3 years ago
For Crane Company, sales is $1700000 (8500 units), fixed expenses are $480000, and the contribution margin per unit is $60. What
const2013 [10]

Answer:

The Margin of safety is $100,000

Explanation:

Price = Sales / number of units = $1,700,000 / 8500 = $200

Contribution margin ratio is the ratio of contribution margin to the sales value. It measure the ratio that contributes in the recovery of fixed cost and making profit.

Contribution margin ratio = Contribution margin / Sale price = $60 / $200 = = 0.3 = 30%

Break-even is the level of sales at which business has no profit no loss situation.

Break-even point = Fixed cost / Contribution margin ratio = $480,000 / 30% = $1600,000

Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.

Margin of Safety = Total sales - Break-even point = $1,700,000 - $1,600,000

= $100,000

6 0
3 years ago
Assume there is a national lottery and the winning ticket is worth​ $10 million. one winning ticket will be selected. if there a
boyakko [2]
The probability that the buyer of one ticket will win the lottery that is worth $10 million will be determined or calculated by dividing the number of tickets that a person has by the total number of tickets which were sold at a certain period. When this statement is translated to mathematical expression,
     P = x / S
where P is the probability, x is the number of ticket bought by the winner (this number is already given to be 1), and S is the number of the sample (this is given to be 175175 million. Substituting the known values,

  P = 1 / 175175 million

<em>ANSWER: 5.71 x 10^-12</em>
7 0
3 years ago
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