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3 years ago

If individuals forecast future prices by examining the rates of inflationof the present and recent past, they are using:

Business

1 answer:

german3 years ago

3 0

Answer:

a. adaptive expectations

Explanation:

When we say someone is using adaptive expectations, it means that they are using past events or experiences in order to predict future behaviors or trends. This methodology is commonly used to predict inflationary rates and how they affect the prices of assets in the future. Generally people will believe that past events will tend to repeat themselves in the future.

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You are planning to buy 2019 MINI Cooper on a loan. Price of the car is $26,000. You are planning to make monthly payments for t

Sergeu [11.5K]

Answer:

$1,223.91

Explanation:

As per the concept of time value of money, the value of money today is more than the value of money tomorrow.

Given:

Price of car = $26,000

Interest rate 12%, compounded monthly

Tenure = 2 years

Now, Price of the car is the value of money today to purchase the car. So, while computing the monthly payment for car $26,000 will be considered as present value.

Monthly payment for car can be computed easily using Microsoft excel.

Use the following mentioned formula to calculate the monthly payment.

"=PMT(rate,nper,pv,[fv])"

wherein,

Rate = 12%/2 (because it has been compounded monthly)

nper = 2*12 (because 2 years are to be compounded monthly.)

Pv = $26,000 (as mentioned earlier)

Since, there is no Fv so it blank.

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4 years ago

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes concept testing, the next s

Anastasy [175]

Answer: commercialization

Explanation:

Concept testing is the stage at which survey is being carried out for a particular product. This is done in order to know how consumers will accept a new product before such product is finally introduced to the market.

Since the product has passed the concept testing, the next step will be commercialization. This is when the product is then introduced and the business is managed in order to make profit.

8 0

3 years ago

Read 2 more answers

__________ is greater when the item is a luxury good rather than a necessity, when many substitutes are available, or when the p

Rasek [7]

Answer:

the correct answer is Price sensitivity

Explanation:

The price sensitivity refers to the amount that the demand will vary depending on a percentage change in the price of a commodity. If the elasticity is higher, then the demand will either increase or decrease in a much greater amount than the percentage change in the price and vice versa.

4 0

3 years ago

If oligopolists engaged in some sort of collusion, industry output would be _____ and price would be _____ than under perfect co

TEA [102]

Answer:

If oligopolists engaged in some sort of collusion, industry output would be smaller_____ and price would be _higher____ than under perfect competition.

8 0

3 years ago

Apex Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall w

BaLLatris [955]

Answer:

It is profitable to accept the special offer.

Explanation:

Giving the following information:

The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.

Variable costs:

Direct materials $50.00

Direct labor (variable) $3.50

Variable manufacturing overhead $1.00

Additional variable cost= $6

This special order would require an investment of $10,000 for the molds required for the extra-large trees.

Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).

Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5

Fixed costs= 10,000

Incremental income= (200*120) - (200*60.5) - 10,000= $1,900

It is profitable to accept the special offer.

3 0

3 years ago