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creativ13 [48]
2 years ago
10

You and the other shoe store owners decide to fix your shoe prices at $60 a pair in order to maximize your profits. This is call

ed _____.
a market price
competition
collusion
Business
2 answers:
belka [17]2 years ago
7 0

You and the other shoe store owners decide to fix your shoe prices at $60 a pair in order to maximize your profits. This is called <u>collusion</u> .

igomit [66]2 years ago
6 0
Is called collusion

It's actually price collusion to be precise ( not to be mistaken for the crime collusion)

Often time, to attract customers, sellers will offer a lower price than their competitor. Though it may attract more customer, it will lower their profit.

In price collusion, all sellers is guaranteed to have same product price and profit margin, creating a perfect competition market for that product
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what is the present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5? assume th
yKpoI14uk [10]

The present value of a deferred perpetuity is $1,938.89.

What is present value?
The present value of a prospective sum of money or cash flow stream given a specified return rate is known as its present value (PV). The present value of future cash flows is reduced by the discount rate, and the higher coupon rate, the lower the present value of future cash flows. The key to correctly valuing future cash flows, whether they are earnings or debt obligations, is determining the appropriate discount rate. The concept of present value states that a quantity of funds today is worth greater than the same amount in the long term. In other words, money gained in the long term is not as valuable as money received today.

The present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5 is $1,938.89. This can be calculated by taking the present value of an ordinary annuity formula, which is PV = A / (1 + r)^n, and adding 5 to n. This gives the equation PV = A / (1 + r)^(n + 5), which can be simplified to PV = A / (1 + r)^n * (1 + r)^5. Thus, the present value is $141 / (1 + 0.06)^10 * (1 + 0.06)^5, which equals $1,938.89.

To learn more about present value
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3 0
11 months ago
Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Wal
kupik [55]

Answer:

$0.20 or 20 cents for every dollar invested as assets

Explanation:

To determine how many dollars (or cents) of net income did Walk Co. generate for every dollar of assets invested we have to;

divide Walk Co.'s net income by its total assets = $40,000 / $200,000 = $0.20 or 20 cents. This is called the

6 0
3 years ago
Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typica
tangare [24]

Answer:

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts is $0.185

total annual cost = $3.914

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts is $0.125

total annual cost = $1.06

l

Explanation:

For the cost of LED and durability

it is require to use a light fixture 500 hours per year

60-watt incandescent light bulb costs $.37 and lasts 1,000 hours. that mean, its last for 2years before buying a new one.

And for a 15-watt LED,  costs $3.00 and lasts for 12,000 hours, thats means it will last for 24 years before purchase of another.

assuming, will are using the 60watts for 24years, a cost of  $.37*12times = $4.44 will be use for buying.

therefore, a 15 watts LED is more cheaper.

For the current charges of LED

for 60watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

60 watts  = 1hour  = (60*0.133/1000) = $0.0068

it is said that, the consumption is for 500 hour per year.

therefore, 60watts used per year = 500*0.0068 = $3.39

return of 10% =0.339.

total cost of watts for 500hr for a year = 3.39+0.339 = $3.729

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts ($0.37/2year) is $0.185

total annual cost = $3.914

for 15 watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

15 watts  = 1hour  = (15*0.133/1000) = $0.0017

it is said that, the consumption is for 500 hour per year.

therefore, 15 watts used per year = 500*0.0017 = $0.85

return of 10% =0.085.

total cost of watts for 500hr for a year = 0.85+0.085 = $0.935

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts ($3/24 years) is $0.125

total annual cost = $1.06

6 0
2 years ago
In capitalism what does competition do for consumers?
Aleks [24]

D. It keeps prices fair for consumers

3 0
3 years ago
Read 2 more answers
An investor purchases a stock for $52 and a put for $0.60 with a strike price of $50. The investor sells a call for $0.60 with a
Nutka1998 [239]

Answer:

Maximum profit = $6

Maximum loss = -$2

Explanation:

The computation of maximum profit and loss for this position is shown below:-

Maximum profit = Strike price - Purchase of stock

= $58 - $52

= $6

Maximum loss = Strike price - Purchase of stock

= $50 - $52

= - $2

Therefore for determining the maximum profit and loss for this position we simply applied the above formulas.

6 0
2 years ago
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