Answer:
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Explanation:
Giving the following information:
Honda Motor Company is considering offering an $1800 rebate on its minivan
New price $30200
Old price $28400.
The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.
Honda's profit margin with the rebate is $5650 per vehicle.
Normal price:
Income= (5650+1800)*42000= $312,900,000
New price:
Income= 5650* 53900= $304,535,000
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Answer:
Option (D) is correct.
Explanation:
Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.
Asymmetric information will result in two problems are as follows:
(i) Adverse selection
(ii) Moral hazard
Answer:(a) The correct answer is (D) All of the above
b) : The correct answer is option (B). (c) : The correct answer is option (A). (d) : The correct answer is option (B) (e) : The correct answer is option (C)
Explanation:
Cost Estimating Relationship or “CER” means a mathematical expression of varying degrees of complexity expressing cost as a function of one or more variables.
The relationship may utilize cost-to-cost variables, such as quality assurance hours to manufacturing hours, cost-to-non-cost variables, such as engineering hours to the number of engineering drawings, or non-cost to non-cost, such as pounds of thrust to weight.
Variables can be referred to as, numerator and denominator, dependent and independent, or pool and base.
Answer:
The correct answer is D
Explanation:
Worth is the word which is described as the value of the business or the net worth which is assets minus liabilities.
In accordance with the Veblen, the concept or the idea of the conspicuous consumption is developed or created. It is believing that the rich person or people are very concerned in showing off their wealth in order to prove their success in from of others.
So, Veblen would likely demonstrate their worth by purchasing the expensive jewels for his wife and then showing off the jewels at the parties.
Judge Oh would likely be in favor of the advocates of restrictions on advertising as Judge Oh would likely the needs of the children of which are not able to think more critically in regards of the ads in which gave the reason as to why Judge Oh favors more the advocates of restrictions on advertising.
