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Brums [2.3K]
3 years ago
13

A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold a

t a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price. An auctioneer faces two bidders, each with a value of either $30 or $80, with both values equally probable. What reserve price should the auctioneer set, and what is the expected revenue from auctioning the item with and without a reserve price?
Business
1 answer:
Marina86 [1]3 years ago
8 0

Answer:

Reserve price = $55

Expected revenue with a reserve price = $55

Expected revenue without a reserve price = $55

Explanation:

The auctioneer should set the reserve price siguiente:

Reserve price = ($30x0.5) + ($80x0.5) = $15 + $40 = $55

In the case of the expected revenue with the reserve price, only the bidder who has set a $80 value will pay the reservation fee, then the expected revenue will be the reserve fee of $55.

In the case of the expected revenue without the reserve price, both of the bidders will enter the auction for the item. Since the values are equally probable the expected profit without the reservation fee is equally $55.  

Hope this helps!

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Answer: Repeat

Explanation:

 When the customers are adopting the product permanently and use in their daily life routine then, they known as the repeat purchasers. The repeat purchaser basically purchase the products very frequently.

The process of repeat purchasing basically indicate that the customer loyalty towards the particular brand and it maintain the customer relationship.

Therefore, if more than 60% of men purchasing the product Gillette fusion razor then they known as the repeat purchaser as they adopted the given product permanently.

6 0
3 years ago
Surfer sam company produced 4,000 units of product that required 2.5 standard hours per unit. the standard fixed overhead cost p
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The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)

3 0
2 years ago
An example of an intermediate good will be:
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Answer:

b. steel purchased by the aircraft manufacturers.

Explanation:

An intermediate good is a producer good or semi-finished  good that is used as an input in the production process in the manufacturing of other goods such as finished goods. An example of an intermediate good in the options given above will be steel that is purchased by the aircraft manufacturers. Steel is a partly finished good used in producing aircraft, as a final or finished good.

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Answer:

To assist the readers to relate objects and actions with texts.

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Aside from telling readers why an illustration is important, the other reason you should refer to it in the text of your document is "to assist the readers to relate objects and actions with texts."

This is evident in the fact that illustration in a text is a means of presenting a graphical representation of ideas, processes, or theories to aid or give elaborate meaning to what is written.

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