Answer:
a. H0 : U ≥ 15
Ha : U < 15
b. Type I error is incorrectly conclude that the pain is reduced in less than 15 minutes.
c. Type II error is fail to conclude that time for pain reduction is less than 15 mints when actually its less than 15 minutes.
Explanation:
Null hypothesis is a statement that is to be tested against the alternative hypothesis and then decision is taken whether to accept or reject the null hypothesis.
Type I error is one in which we reject a true null hypothesis.
Type II error is one in which we fail to reject the null hypothesis that is actually false.
Answer:
Price discrimination is when a producer charges different prices, to different consumers for the same good or service. Therefore, an airline that charges different prices to different passengers for the same flight is practicing a third degree price discrimination because consumers are charged different prices based on their different demand elasticities.
Economic efficiency is when scarce resources are used in the most efficient way to produce maximum output; it consists of productive efficiency and allocative efficiency. For price discrimination to be possible, the firm must have a certain degree of monopoly power; that is, the firm must be a price maker. Monopolies typically fit into this description as they discriminate by charging consumers with an inelastic demand higher prices; this reults in allocative ineffciency because price is greater than the Marginal Cost (P>MC).
On the other hand price discrimination could increase efficiency; price discrimination aims to convert consumer surplus to producer surplus, thereby increasing the profit of the firm. An increase in profits could be dedicated to investement in research and development; this could see such a firm achieve dynamic efficiency (long-run productive efficiency). Secondly, due to the increased profits and the potential for more profits, output is increased and price moves closer to the MC (Closer to allocative efficiency). In addition, an increase output would mean that the firm is making use of its spare/idle capacity in production, moving output towards optimum. From another perspective, a firm can reap economies of scale through price discrimination; this is because price discrimination leads to an increase in output and a reduction in average cost.
Explanation:
Answer:
The answer is option A) In the short-run the effects of the housing and financial crises raise both inflation and the unemployment rate.
Explanation:
Deregulation in the financial industry was the primary cause of the 2008 financial crash and an increase in world prices of oil and foodstuffs were affecting the economy.
The financial crisis permitted banks to engage in hedge fund trading with derivatives and when the values of the derivatives crumbled, banks stopped lending to each other.
It allowed speculation on derivatives backed by cheap and improper issuance of mortgages, available to even those with questionable creditworthiness.
In the short-run the effects of the housing and financial crises of 2008 raised both inflation and the unemployment rate.
Answer:
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Explanation:
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Total Fair Assets=Fair Value of Assets-Fair Value if Liabilities
Total Fair Assets= $89,900-$15,200
Total Fair Assets= $74,700
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Longhorn Goodwill=$82,620-$74,700
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Answer: The correct answer is "Nikkei includes 10% overhead costs and an 8% profit margin in the price of all the parts they export to the U.S.".
Explanation: In her testimony, the president claimed<u> Nikkei includes 10% overhead costs and an 8% profit margin in the price of all the parts they export to the U.S.</u> Using traditional guidelines, Congress determined that Nikkei was not dumping.
It is known as dumping when companies sell products at a lower price abroad than they sell in their country.
