Answer:
It should price the espresso at $1.25
Explanation:
The best Income is generated at the price of 1.25 dollar
Therefore, this is the amount to Specialty Coffees set for espresso.
Answer:
Contract 2 offers the most value.
Explanation:
a) Data and Calculations:
Payment terms of the contracts:
(dollars in millions)
Year Contract 1 Contract 2 Contract 3
1 $1.50 1.0 3.5
2 $1.50 1.5 0.5
3 $1.50 2 0.5
4 $1.50 2.5 0.5
Discount rate = 12%
Present value of Contract 1:
PV annuity factor at 12% for 4 years = 3.037
PV annuity of $1.50 = $1.50 * 3.037 = $4.5555 or $4,555,500
Present value of Contract 2:
$1.0 * 0.893 = $0.893
$1.5 * 0.797 = 1.1955
$2 * 0.712 = 1.424
$2.5 * 0.636 = 1.59
Total = $5.1025 or $5,102,500
Present value of Contract 3:
$3.5 * 0.893 = $3.1255
$0.5 * 0.797 = 0.3985
$0.5 * 0.712 = 0.356
$0.5 * 0.636 = 0.318
Total = $4.198 million or $4,198,000
Answer: B - False
Explanation:
In a command economy the government only makes economic decisions- what is produced, price, income etc . The government owns all means of production.
I hope my answer helps.
a. There is a contract for the sale of the bananas because UCC allows to keep certain terms open while contracting, which includes price. If the parties are not clear on the price or the price is to be set over time, the parties can fill the term later under UCC. Hence the agreement between Sam and Meranda for the sale of bananas constitutes a valid contract. If the parties are unable to determine the price, court will determine a reasonable price based on the fair market value or the intention of the parties while making the contract and by using the most reasonable method as per the business practices. Here 1000 lbs of bananas actually worth $5000. Hence the court may decide the price to be $5000 or determine the price by analyzing the intention of the parties while making the contract.
b. If the agreement was to repair several air conditioners in an apartment building, it does not come under UCC because UCC governs only contracts for sale of goods. Service contracts are governed by common law of contracts and price is necessary to form a valid contract. Hence the court will rule the contract as invalid and would not enforce the contract.
Answer:
The correct answer is option d.
Explanation:
A monopolistic firm is producing 12000 units at a price of $10 per units.
The average variable cost per unit is $6/unit.
The fixed costs are $15,000.
The average fixed costs will be
=
=
=1.25
The average total cost is
=average fixed cost+average variable cost
=$(6+1.25) per unit
=$7.25 per unit
Here, the price per unit is greater than average total cost per unit. This means that the firm is having supernormal profits. This will attract other firms to join the market.
In the long run, when new firms enter the market, the market supply will increase leading to a fall in price.