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zloy xaker [14]
3 years ago
9

Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending

is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where::_______
a. x represents income earned.
b. y represents income earned.
c. b = 1/2.
Business
1 answer:
AveGali [126]3 years ago
7 0

Answer:

a. x represents income earned

Explanation:

Using the model, which is the equation of a line or regression model.

y = mx + c

The base amount of $1000 which is always included is constant, this represents c, the intercept.

x in the equation is the independent variable, which is the income earned, and dictates the change in the amount spent y

m = 1/2 which dictates the proportion of the income earned that is spent.

y = the amount which is spend

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4 years ago
Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital e
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Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project.  This IRR helps the managers to determine the projects that add value and are worth undertaking.  IRR is based on assumptions.  Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used  to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

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3 years ago
If your economics class was graded on a curve and everyone agrees to study only half as much, everyone would get the same grade
erik [133]

Answer:

studying

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The coming together by students not to study is an example of collusion in an oligopoly.

An Oligopoly is when there are few large firms operating in an industry.  Collusion is when people come together and decide on a particular course of action. It is usually non competitive

The dominant strategy here is to study.

Dominant strategy is the best option for a player regardless of what the other players are doing.

the students prefers to study more and get an A or to study the same amount as other students and get a C. Her least preferred option is an F. Since she does not know the actions of the other students, are best option is to study

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The term that embodies these insults is identity challenges. 
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Carol has decided to open a Vietnamese restaurant in her neighborhood. She will be solely responsible for the management of the
bogdanovich [222]

Answer:

e. She may find it difficult to deal with the stress of rent increase.

Explanation:

Carol has decided to open a Vietnamese restaurant solely. She has adopted 'sole proprietorship' form of business.

Sole Proprietorship is a form of business owned, run & managed by a single entrepreneur (proprietor).

This form of business has following advantages & disadvantages:

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