Answer:
Explanation: when the total number of customers *increases*, in order to serve the increased number of customers, it needs to be done *faster* in order not to keep other customers waiting for too long. And also this increased customer patronage would increase as well, the number of cars driving through the drive way
Answer:
4.86%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ original investment
where,
Average Accounting Income is
= Annual Cash Inflow – Depreciation
= $8,000 - $6,300
= $1,700
The Depreciation is
= ($35000 - $,3500) ÷ 5 years
= $6,300
And, the original investment is $35,000
So, the accounting rate of return is
= $1,700 ÷ $35,000
= 4.86%
We simply applied the above formula
Answer:
The correct answer is: zero; zero.
Explanation:
If a monopolist discovers a way to perfectly discriminate, it means that the monopolist will charge equal to the willingness to pay from each consumer.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Since each consumer is paying price equal to its willingness to pay, the consumer surplus will be zero.
There will be no efficiency costs. The monopolist will sell output where the maximum price the consumer is willing to pay is equal to or greater than the marginal cost. So all efficient trades will occur, there will be no efficiency costs.
Answer: A.Venture capital firm
Explanation:
Carlos's company is a new business. One with growth potential and less than a year under it's belt and yet it has done some work with Calvin Klein. He now needs capital to continue the momentum and there is a specialized finance vehicle for people like him, Venture Capitalism.
Venture Capitalism refers to Venture Capital firms investing funds in growing or starting businesses. They have a high risk appetite which enables them to go into business with new firms. The key criteria is that there MUST be high Growth Potential.
Their strategy is simple, they invest in a new company in exchange of a certain amount of ownership of the business and then 4-6 years later exit the company when they are bought out.
Carlos's business is growing and has huge potential, if he doesn't mind sharing some of his ownership, Venture Capitalism is the best way to go.
