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Anna11 [10]
3 years ago
8

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaur

ant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.
Business
2 answers:
saveliy_v [14]3 years ago
8 0

Answer:

Psychological pricing

Explanation:

Psychological pricing is the pricing method that is based on the belief that prices always have psychological effects. Pricing are purposely done in a way to appeal to customers emotion , To achieve this , a common pattern is always employed in the pricing system . It could either be the use of odd numbers for prices or a rhyme decimal figure.

Using two decimal figures and whole numbers by the two stores is an example of psychological pricing system

wel3 years ago
5 0

Answer:

Psychological pricing

Explanation:

Psychological pricing also known as price ending, charm pricing is a pricing and marketing strategy based on the theory that prices produces a psychological impact. This involves setting prices as odd prices being a little less than a whole number such as $9.99 or £2.99. It is believed that consumers think that this prices are lower than they actually are.

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2. (double-weight) A European put option is ""in the money."" The price of the underlying security now rises. a. What happens to
sertanlavr [38]

Answer:

(A) premium on put option falls (B) premium on call option rises (C) premium on call changes more in absolute terms

Explanation:

An European put expires on a specific maturity date and can only be exercised on that date. A put option grants the right to sell an underlying security at an exercise price (X) on the exercise date, irrespective of the price the underlying security is trading at (S). On the other hand, a call option grants the right the buy an underlying security at the exercise price. The call or put option buyer will pay a Premium to the option writer to obtain this right. The amount charged as premium depends on how valuable the option is.

The value of a put option (P) = X-S (thus, the lower the price of the underlying security, the more valuable the put option is, vice versa)

The value of a call option (C) = S-X (thus, the higher the price of the underlying security, the more valuation the call option is, vice versa)

If the price of the underlying security rises,

(A) the put option will become less valuable, and its premium will fall

(B) the call option will become more valuable, and its premium will rise.

(C) the absolute size of the change in the call option will be larger than that of the put option. This is because the more the price of the underlying security increases, the more valuable the call option will become (as an example, if I have an option to buy an item at $10 and the current price of the item is $20, I can pay a positive value for that option. If the market price of the item increases to $50, I can pay even more for the option to buy the item at $10).

Whereas, the value of a put option will remain static once the price of the underlying rises beyond the exercise price. For instance, if I have the option to sell an item at $10 when the market price is $20, I just will not exercise the option. I will not change my decision if the market price rises to $50.

3 0
3 years ago
Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte
goldenfox [79]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

3 0
3 years ago
Read 2 more answers
Why is the leaf washed with distilled water​
Aliun [14]
To remove almost all of the sodium and minerals
3 0
3 years ago
Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt
tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68  

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity  as follows.  

A/(r-g)  = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n)  = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 =  1,158,092.68  

The present Value of the growing annuity= $1,158,092.68  

6 0
3 years ago
When manufacturers such as pampered chef sell directly to consumers, they perform both production and retailing activities?
jekas [21]
That statements is true

Manufacturer is a type of business that transform raw materials into a sellable goods, so technically they can be considered as a producer in the market.
Retailers is someone that sell the goods that produced by the manufacturers to the consumers.

So, in this case, they did perform both production and retailing activities
8 0
3 years ago
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