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Mumz [18]
3 years ago
8

There are 100 used laptop g for sale on the market. 40% of them are in good condition, and the rest of them are broken, which is

the common knowledge to the owners and the buyers. Owners of broken laptops are willing to sell them for $300. Owners of good used laptops are willing to sell them if the price is above $1600 but will keep them if the price is lower than $1600. There is a large number of potential buyers who are willing to pay $2000 for a good laptop and $600 for a broken laptop. Buyers can't tell good laptops from bad, but original owners know. In equilibrium, what could be the maximum price set for a broken laptop to be sold
Business
1 answer:
NNADVOKAT [17]3 years ago
7 0

Answer:

In equilibrium the maximum price set for a broken laptop to be sold is $600

Explanation:

According to the given data we have the following:

It is given that 40% laptops are in good condition. This implies that 60% are in bad condition.

In ordert to calculate the maximum price set for a broken laptop to be sold we would have to calculate the expected price that the buyers will be willing to pay for a  laptop as follows:

Expected price=0.60($2000)+0.40($600)

Expected price=$1,200+$240

Expected price=$1,440

As the owners of good laptops are willing to sell their laptops for $1,800, whis is more that $1,440, they will not sell their products.

This implies that only bad laptops are sold in the market. The willingless to pay for the bad laptops is $600

Therefore, In equilibrium the maximum price set for a broken laptop to be sold is $600

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Find the final amount of money in an account if $ 8 , 000 is deposited at 5 % interest compounded semi-annually and the money is
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Answer: $12477.27

Explanation:

The formula to find the compound amount after t years (compounded semiannually) :-

A=P(1+\dfrac{r}{2})^{2t}

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Rate of interest : r=0.05

Time : 9 years

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A=8000(1+0.025)^{18}=12477.2697417\approx\$12477.27

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3 years ago
Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000
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Answer:

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Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

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Opening and closing inventory are valued at variable cost under variable costing.  Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

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When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.

Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory

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7 0
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vivado [14]

<u>Answer:</u>

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