C because when you want something less they make it cheaper hoping you’ll want it more. McDonald’s coffee is cheaper then Starbucks making it a bargain and poor people want it
Initial price, P₀ = $1.25
Initial demand, Q₀ = 30 million
New price, P₁ = $1.75
New demand, Q₁ = 35 million
By definition, price elasticity is
η = (5/65)/(0.5/3)
= 0.4615
Answer: η = 0.46 (nearest hundredth)
This means that greater demand makes it possible to increase the price. Usually, this is not the case because lowering the price increases sales.
Answer:
The un levered beta ( bu) of the company is 1.52
Explanation:
Given information -
Equity (E) - $20 million
Debt (D) - $5 million
Beta ( levered ) - 1.75
Tax rate ( T ) = 40%
D / E ( Debt to Equity ratio ) = $ 5 million / $20 million = .25
Formula for taking out un levered beta ( bu) is -
Beta levered ( bl ) = Beta un levered ( bu ) [1 + (1 - T ) D / E ]
1.75 = bu [1 + (1 - 40% ) .25
1.75 = bu [1 + .6 x .25 ]
1.75 = bu [ 1 + .15 ]
1.75 = bu [ 1.15 ]
bu = 1.75 / 1.15
bu = 1.52
Answer:
Safety Stock is 336.62 units
Explanation:
As per given data
Demand = D = 50,000
Ordering Cost = S = $35
Holding Cost = H = $1 per unit per year
Weekly Demand = Demand / 50 weeks = 50,000 / 50 = 1,000 units per week
Weekly Demand during Lead time of 3 weeks = 1000 x 3 = 3,000 units
Standard Deviation = 216.51 units
Desired Service level = 94%
The Z score at 94% service level is 1.55477
Safety Stock = Zscore x standard deviation = 1.55477 x 216.51
Safety Stock = 336.62
The answer in the space provided is second. The diminishing
returns set happens when there is an increase with the input variable and by
this, it will likely cause the output to decrease as the marginal increase and
in the same time, other inputs remains to be in constant.
