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Ugo [173]
3 years ago
6

If the price elasticity of demand for U.S. automobiles is higher in Europe than it is in the United States, and transport costs

are zero, a price-discriminating monopolist would charge:__________.
a. a less profitable price for autos in the United States than in Europe.
b. a lower price for autos in the United States than in Europe.
c. the same price for autos in the United States as in Europe.
d. a higher price for autos in the United States than in Europe.
Business
1 answer:
Anvisha [2.4K]3 years ago
5 0

Answer:

d. a higher price for autos in the United States than in Europe.

Explanation:

As it is mentioned that the price elasticity of demand in more in Europe as compared with the United States that represents a slight increase in price would decline the immense demand in Europe

Plus the elasticity in the united states is not high that reflects that change in price have a less impact on quantity demanded

Therefore the option d is correct

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A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate ann
PolarNik [594]

Answer:

Internal rate of return = 12%

Explanation:

Below is the calculation of internal rate of return:

The new machine requires cash payment = $38198

Annual cash flows = $15904

Time period = 3 years

First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.

Factor = 38198 / 15904 = 2.40

Now look the value 2.40 in the table:

Thus Internal rate of return = 12%

6 0
2 years ago
Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufa
NISA [10]

Answer:

differences in national cultures

Explanation:

Based on the scenario being described it can be said that the most likely challenge that Globe Cars is likely to face would be differences in national cultures. This is mainly due to the fact that each company originates from different countries with different cultures and beliefs. Therefore there is a high possibility that some of the values of each culture may contradict with the others.

5 0
3 years ago
If you are required to show proof of financial responsibility for the future, for how many years must the proof be kept? 1 year
Harrizon [31]

Answer:

For 2 years

Explanation:

Financial responsibility is the procedure or the process which is defined as managing the money and also the other similar assets, in a method which is considered as productive and in the best interest of family, business or individual.

So, in order to show the proof of the financial responsibility in the near future, business or individual needs to show the proof for the 2 years because to make the proof comparable with the previous year.

7 0
2 years ago
The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original
bezimeni [28]

Answer:

b. The same as it would have been if the original payment had been debited initially to an expense account

Explanation:

We can use an example to explain this:

original journal entry to record a 3 year insurance policy on January 1 is:

Dr Prepaid insurance 3,600

    Cr Cash 3,600

Adjusting entry on December 31

Dr Insurance expense 1,200

    Cr Prepaid insurance 1,200

balance of prepaid insurance = $3,600 - $1,200 = $2,400

If instead of recording prepaid insurance on January 1, you recorded insurance expense:

Dr Insurance expense 3,600

    Cr Cash 3,600

Adjusting entry on December 31

Dr Prepaid insurance 2,400

    Cr Insurance expense 2,400

balance of prepaid insurance = $2,400

5 0
3 years ago
The balance sheet of Subsidiary shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and
Andrews [41]

Answer:

b. $20,000

Explanation:

Goodwill = Investment in Subsidiary - (Asset With book value - Liability with book value) - (Fair value of Asset - Book value of Asset)

Goodwill = $95,000 - ($86,400 - $15,000) - ($90,000 - $86,400)

Goodwill = $95,000 - $71,400 - $3,600

Goodwill = $20,000

So, parent should record goodwill on this purchase of $20,000

8 0
2 years ago
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