Answer:
$418
Explanation:
FV = $400,000. This is the amount you want to have in your retirement account 25 years from now
i/r = 8%/year = 0.67%/month. The interest that the account pays
n = 25 years = 25 x 12 = 300 months
PV = 0
PMT (The amount of monthly deposit required to achieve the target above. This is the missing value we need to calculate)
By using financial calculator, we obtain:
PMT = $418
Monopolists do not prefer to produce in the when the demand for a good produced by them is inelastic. Option B is the correct answer.
- It is common to observe that monopolists, avoid engaging production when the demand for their product becomes inelastic.
- In order to understand this situation, it is important to address the meaning of inelastic demand.
- The term 'inelastic demand' refers to a situation where the demand for a product does not increase/decrease (change) when there is an increase/decrease (change) in its price.
- This does not lead to profits for a monopolist.
- It is because, a firm will be able to secure profits by producing lower amounts of goods for a higher price when the demand is elastic.
- Hence, when the demand is inelastic, the increase in the quantity will be sold at the previous standard price, leading to a fall in terms of the total revenue.
Therefore, it is clear that a monopolist will not produce when the demand for a good is inelastic.
Learn more about Demand Elasticity here:
brainly.com/question/5078326
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This is an example of anticipatory change in the market and working accordingly.
Explanation:
The cost of inflation int he country that Van works in have risen up directly and this increase in the rate of change of inflation has led to volatility in the market.
SO he updates the prices every day and sends newspaper inserts advertising the new prices. This makes it better for him to deal with the inflation that is happening and fluctuating everyday.
This makes the functioning smooth in context of his daily dealings with costumers who need to be aware of what is happening in the market.
Guarantees your money is available when you need it
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