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Nat2105 [25]
3 years ago
7

You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasti

city of demand of Texans for a car wash is -2, while that of non-Texans is -1.5. Your marginal cost is $6.
a. Are the conditions necessary for price discrimination to be an effective means of enhancing profits being met? Explain.
b. What is the profit-maximizing price to charge a Texan for a car wash?
c. What is the profit-maximizing price to charge a Californian for a car wash?
Business
1 answer:
Levart [38]3 years ago
7 0

<span>a. </span>No. Since the good that I am selling is inelastic considering the elasticity given in and outside Texas, having a lower price than non-Texan gas stations would have less impact on the quantity demanded.

<span>b. </span>The profit-maximizing price to charge a Texan for a car wash would be $12.

<span>c. </span><span>The profit-maximizing price to charge a Californian for a car wash would be $18. </span>

<span>(See attached for the calculations.)</span>

Download docx
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During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol
gizmo_the_mogwai [7]

Answer:

Eastern Data Links Corporation

Journal entries

Step 1.

Issuance for Common stock at a premium in exchange for cash

Feb 12,

Dr. Cash account with $18,000,000

Cr. $1 Ordinary share Capital Account with $2,000,000

Cr. Ordinary share premium Account with $16,000,000

(Being $18million received for 2million shares valued at $1 and sold at a premium of $9)

Step 2.

Issuance for Common stock at a premium in settlement of a liability due

Feb 13,

Dr. Accounts Payable account with $360,000

Cr. $1 Ordinary share Capital Account with $40,000

Cr. Ordinary share premium Account with $320,000

(Being $360,000 legal expense liquidation in exchange of 40,000 shares valued at $1 and sold at a premium of $9)

5 0
3 years ago
Expansionary fiscal policy is generally designed to ____________ aggregate demand and thus ____________ real GDP and employment
vichka [17]

Answer:

increase

increase

Explanation:

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Expansionary fiscal policies increases money supply which increases aggregate demand, as a result output  or real GDP increases

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

4 0
3 years ago
Slavery, as a business practice protected by state laws, provided unfair advantage against those employers not using slaves, and
romanna [79]
True, some people could not have slaves
6 0
3 years ago
Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Vlada [557]

Answer: 75,000 units

Explanation:

Come up with an expression to solve this.

Assume the budgeted production needed is P.

P needs 2 pounds of raw materials per unit so raw materials needed are 2P.

Beginning raw materials for February have to be 30% of the needs of February;

= 30% * 2P

= 0.6P

Ending raw materials for February have to be 30% of March needs so;

= 30% * 100,000 * 2 pounds

= ‭60,000‬ pounds

So;

Budgeted raw materials purchase for February = Raw materials needed + Ending raw materials - Beginning raw materials

165,000 = 2P + 60,000 - 0.6P

1.4P = 165,000 - 60,000

P =  (165,000 - 60,000) / 1.4

= 75,000 units

5 0
3 years ago
Which would you rather be owning if there is a decline in market interest rates: long-term bonds or short-term bonds? why?
Thepotemich [5.8K]

Long-term bonds are preferable to hold if interest rates decrease because their price will rise more than the price of short-term bonds, providing a bigger return. Long-term bonds, however, are more susceptible to interest-rate risk. In addition, the longevity of the bonds, not only their term to maturity, is a major factor.

<h3>What are short-term bonds?</h3>

Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.

The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.

To know more about bonds, visit

brainly.com/question/22939161

#SPJ4

3 0
2 years ago
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