Answer:
Since the opening price is set so low, potential buyers will think that their total consumer surplus is very large. For example a consumer may be willing to pay $40 for an iPod but since the price is $1 his total consumer surplus is $39, so he will tempted to offer higher bids which eventually lead to a higher final price.
Answer:
- <u>Best Buy sells 560 iPods</u>
- <u>Sears sells 70 iPods</u>
Explanation:
You may set a system of equations.
<u>1. Name the variables: </u>
- B= <em>number of iPods</em> sold by <em>Best Buy</em>
- S =<em> number of iPods</em> sold by <em>Sears</em>
<u>2. Translate every verbal statement into a mathematical expression</u>
a) <em>A local Best Buy sells 8 times as many iPods as Sears</em>.
b) <em>The difference between their sales is 490 iPods</em>.
<u>3. Solve the system of equations</u>
a) Substitute B = 8S into the second equation
b) Add like terms
c) Divide both sides by 7
d) Substitue S = 70 into B = 8S
<u>Solution:</u>
- Best Buy sells 560 iPods
- Sears sells 70 iPods
Answer:
Option A Current Ratio
Explanation:
The reason is that current ratio gives information from which source of finance the working capital is funded from. If the answer is below 1 then the short term liabilities are used to finance the short term assets. This also tells whether or not the company possesses enough cash and cash equivalents to fund its future cash needs by comparing its result with past data and the industry average. So the right option is option A.
Answer:
13.33
Explanation:
We have to write 2 equations to set equal to each other.
The first one will look like this:
200x + 5,000
The x will go with the 200 because the project revenue grows by $200 each month thereafter the start of $5,000.
The second equation will look like this:
50x + 7,000
The project begins at $7,000 and grows by $50 every month so the x will go with the 50.
Now, set them equal to each other
200x + 5,000 = 50x + 7,000
Solve
150x + 5,000 = 7,000
150x = 2,000
x = 13.333
Therefore, in the thirteenth month the project will breakeven.
<em>Hope this helps!!</em>
<em>- Kay :)</em>
Answer:
All of the options
Explanation:
A comprehensive evaluation of the group of businesses a company has diversified into involve:
Evaluating the attractiveness of industries the company has diversified into and the competitive strength of each of its business units.
Evaluating the strategic fits and resource fits among the various sister businesses.
Ranking the performance prospects of the businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its various businesses.
Using the results of the prior analytical steps as a basis for crafting new strategic moves to improve the company's overall performance.