Answer:
Consumers would not keep buying ice cream at $2.75 because after purchasing a certain amount of ice cream, utility would be maximised and consumers would not value ice cream at $2.75 anymore. Consumers would not purchase a product it the marginal utility that would be derived from consuming the product is less than the price.
According to the law of diminishing marginal utility, as more units of a product is increased, total utility increases but at a decreasing rate.
Explanation:
Marginal utitiy is the increase in utility that is derived from consuming one more unit of a product.
Answer:
D) Recognition of a need
Explanation:
The 5 stages of the buying process are:
- problem recognition (or recognition of a need): this is the first stage of the buying process. At this stage the buyer realizes that he/she has an unsatisfied need or want. The buyer will try to change his current state by satisfying his/her need.
- information search
- evaluation of alternatives
- purchase decision
- post purchase behavior
Answer:
Kindly check explanation
Explanation:
Bangalore's Finishing school :
From the excerpt above :
India's workforce possess a comparably better technical skills in the aspect of information technology while the rest of the world have the comparative edge when it comes to interpersonal relationship.
Since Indian workers possess technical edge in IT, India uses that as an export commodity while importing interpersonal education which they are deficient in.
From my own perspective, the trade in services will lead to mutual benefit between the trading nations because both are simultaneously giving out their resources or knowledge base while also receiving aid in the areas where thy are lacking.
Answer:
What is the present value of the payments if they are in the form of an ordinary annuity?
Discount all cash flows
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
12,000/1.09^5=7,799
Add all these discounted cash flows= $46,675 is the present value of ordinary annuity
a-2. What is the present value of the payments if the payments are an annuity due?
In an annuity due payment is made at the beginning of the year so we subtract one from each compounding period so,
12,000/1.09^0=12,000
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
add all these discounted cash flows = $50,876= PV of annuity due
FV of ordinary annuity
PV= 0
PMT=12,000
I= 9
N= 5
FV=? Put these in financial calculator= $71,816
Fv of annuity due=
12,000+
PV=0
PMT=12,000
I=9
N=4
FV=?=66,877
Pv of annuity due is higher and FV or ordinary annuity is higher.
Explanation:
