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antiseptic1488 [7]
3 years ago
13

Which case below best represents a case of price​ discrimination? A. A professional baseball team pays two players with differen

t batting averages different salaries. B. A major airline sells tickets to senior citizens at lower prices than to other passengers. C. An insurance company offers discounts to safe drivers. D. A utility company charges less for electricity used during​ "off-peak" hours, when it does not have to operate its​ less-efficient generating plants.
Business
1 answer:
Sever21 [200]3 years ago
6 0

Answer:

B. A major airline sells tickets to senior citizens at lower prices than to other passengers.

Explanation:

The pricing strategy refers to a strategy where the company charges the different prices for the similar products to the customers

In the case of the pure price discrimination, the seller would charge the price i.e. maximum he or she would have to pay also it is depend upon the specific characteristics and the amount charged to each and every group through a different price

Therefore the option B is correct

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The Market Outlet has a beta of 1.38 and a cost of equity of 14.945 percent. The risk-free rate of return is 4.25 percent. What
evablogger [386]

Answer:

The discount rate assign to a new project with a Beta of 1.25 is 13.94%

Explanation:

The applicable formula is the Capital Asset Pricing Model formula of Miller and Modgliani  quoted below:

Ke = Rf + (Market risk premium x Beta)

Currently Ke=14.945%

Beta =1.38

Risk free rate of return (Rf) is 4.25%

Market risk premium is the unknown

14.945%=4.25%+(Market Risk Premium)*1.38

14.945%-4.25%=Market Risk Premium*1.38

10.70% =Market Risk Premium*1.38

10.70%/1.38=Market Risk Premium

Market Risk Premium =7.75%

However, the new project cost of equity has to be determined due to having a different Beta factor of 1.25(a different risk appetite)

Using the above formula, we have

Ke=4.25%+(7.75% *1.25)

Ke =13.94%

7 0
3 years ago
you normally stay at home on wednesday nights and study. however, next wednesday night, your best friend is having a big birthda
lesya692 [45]

The value of what you forgo in order to attend the party is known as the opportunity cost. due to you Normally studying at home, the advantage of the party outweighs the potential cost (such as a greater that you would have learned from studying that evening (for homework or a test).

<h3>What is meant by opportunity cost?</h3>

In other terms, opportunity cost is the other option or opportunity you must forgo in order to pursue your preferred alternative. It is, to put it simply, what we have to give up in order to act.

For instance, if you attend your friend's birthday celebration, you will undoubtedly miss your preferred study period for the exam the following day. This may result in a gorgeous crimson "F" on your exam paper, which would be a terrible loss. For this reason, sane people who are aware that they are not intelligent enough to review for the test while intoxicated in five minutes typically opt to stay at home and study. The inability to study for your exam in this instance is a lost opportunity.

To learn more about opportunity cost from given link

brainly.com/question/1549591

#SPJ4

3 0
1 year ago
When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify: Company
Finger [1]

Answer:

Company strengths and weaknesses

Explanation:

SWOT analysis is a strategic technique that help to identify company´s risk or weakness and how to overcome with it´s strength and opportunity. It can be used at any platform. It is useful analysis for future course of action that help the company to grow and prepare itself from any possible threat.

SWOT stands for Stength, Weakness, opportunity and threat.

6 0
3 years ago
An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $329,500 45% weight Comparable 2: $
n200080 [17]

Answer:

$322,990

Explanation:

The reconciled estimated market value of the subject property will be calculated as follows:

($329,500 X 0.45) + ($320,900 X 0.35) + ($312,000 X 0.2) = $322,990

8 0
3 years ago
An executive who prioritizes the organization's mission and the needs and goals of subordinates, rather than ego gratification a
julsineya [31]
The executive is exhibiting a mission-driven leadership characteristic.
6 0
3 years ago
Read 2 more answers
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