Answer: b. $200
Explanation:
A person's willingness-to-pay refers to the maximum price they would be want to pay for a good or service. For instance, if you refused to pay more than $25 for a jar of honey, your willingness-to-pay for the jar of honey is $25.
In this scenario, MusicLover will buy the headset if they are $195 but not if they are $210. His willingness to pay is therefore between $195 and $210. From the options, the only figure in that range is option B with $200.
P= percent change
The new number is lower than the original, so we need to use a % decrease formula.
P=[(original#-new#) ÷ original #] x 100
P= [(29.77-28.35)/29.77] x 100
P= (1.42/29.77) x 100
P= 0.047747 x 100
P= 4.77% decrease
Hope this helps! :)
Answer:
The amount to deposited = $1,538,461.54
Explanation:
<em>A fund that pays a fixed amount for forever is an example of a perpetuity. Hence, the amount to be deposited today is the present value of the perpetuity.</em>
This given below as follows:
PV = A × 1/r
PV - present value of perpetuity
r- Interest rate = 6.5%. A- annual cash flow - 100,000
PV = 100,000 × 1/0.065= 1,538,461.54
The amount to deposited = $1,538,461.54
Answer: e. They will make similar price cuts.
Explanation:
In an Oligopoly, there are few Firms in the market and as such if they colluded, they could control the market.
They rarely do however due to the legal and operational complexities of such a move so they exist in a sort of state where all the firms charge a set price and avoid changing this.
This is because if one firm increases price, they will lose market share.
If another firm reduces price, they might be able to capture more Market share so all the other firms reduce price as well to maintain their market share. This latter scenario would see them all maintain market share but have less profit due to charging less.
I digressed.
When a firm in an Oligopolistic Market reduces price, the other firms follow suit.
