Answer:
$40,000 per year; $37,500 per year; $40,000.
Explanation:
From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".
So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.
At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.
Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.
Answer:
Over longer periods of time, demand tends to become more elastic.
When there are fewer substitutes, demand tends to be less elastic.
Explanation:
Over longer period of time demand tend to be more elastic because the greater availability of close substitutes of a good the better consumers are able to respond to change in price.
<span>The independent variable is the size of the aquarium and the dependent variable is the size of the fish population. All other variables in this scenario are held constant. Dependent variables are aspects that the researcher deliberately changes to see what will result from the change. If the food, water temperature and cleanliness are the same and the size of the aquariums is different, that makes aquarium size the independent variable.</span>
Answer:
The answer to this question is b. Yours will be positive and your roommate's would be negative.
Explanation:
Income elasticity of demand is the degree of responsiveness of demand to changes in income. In other words, it measures how changes in income of consumers will affect the quantity of commodities demanded by such consumers.
An income elasticity of demand can be positive or negative.
It is positive, when an increase in income leads to an increase in the quantity demanded by the customer. However it is referred to as negative when an increase in income leads to decrease in the quantity demanded by the consumer.
In the question above, it can be seen that the increase in income of the first person brought about increase in the commodity demanded thereby making his income elasticity of demand positive. one the other hand, the increase in the income of his roommate, brought about decrease in his demand which translate to the fact that his income elasticity of demand would be negative.
Hence the answer given.
Answer:
Option C has a lower present worth, thus his cost is lower than other options after, considering time value of money <u>595,098.03</u>
Explanation:
Option A present worth <u>600,000</u>
Option B present worth of annuity-due
C $ 69,000
time 25 years
rate 0.12
<u>PV $606,117.7906 </u>
Option C
650,000 cash payment less present value of the rental space:
C $ 7,000
time 25 years
rate 0.12
PV $54,901.9738
650,000 - 54,901.97 = <u>595,098.03</u>