Answer:
a. Municipal bond
b. Yes. To Corporate Bond.
Explanation:
Municipal bonds are tax exempt so the better option will be the one offering a higher return after it is adjusted for tax.
a. Corporate after-tax rate = 9.5% * ( 1 - 33%)
= 0.06365
= 6.4%
<em>Municipal rate is higher at 7% and so is a better option. </em>
b. Corporate after-tax rate = 9.5% * ( 1 - 15%)
= 0.08075
= 8.08%
<em>Corporate bond return is now higher than Municipal bond so is a better option.</em>
Answer:
The correct answer is letter "B": second-degree; the firm cannot identify its customers' types of demand curves before they buy, so the firm produces various versions of the product in hopes that customers will self-select the appropriate product.
Explanation:
Price discrimination occurs when a company charges different customers different prices for the same goods or services. The second-degree price discrimination takes place when different prices are charged for different quantities consumed typically when the goods are bought in bulks. Though, only when the purchase happens companies can identify the type of demand for the products offered. To counteract that, firms set different bulks of goods according to what they "<em>think</em>" can be suitable for consumers.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Is checking account
commonly, company using checking account for a specific purpose, i.e: checking account for travel, checking account for supplies
, etc.
Answer:
c.
Explanation:
Based on the scenario being described within the question it can be said that the statement that is not possible would be Kelly having a comparative advantage in repairing cars and in cooking meals. This is because a when having a comparative advantage you are better at something but at the same time you are giving up other opportunity costs. Therefore in this scenario Kelly can only have a comparative advantage at either repairing cars or cooking meals but not both.