Answer:
a. Do these preferences exhibit a diminishing marginal rate of substitution?
- no, because the consumer is actually purchasing a higher amount of goods, the only difference is that they are paying a lower price.
Assume that this consumer has $24 of income to spend on sugar, and the price of store-brand sugar is $1 per pound and the price of producer-brand sugar is $3 per pound.
- The consumer will purchase 24 pounds of price of store sugar simply because the price is much lower, not because he/she wants to consume less. Actually a lower price might result in an increase of consumption.
b. How much of each type of sugar will be purchased?
- If the consumer is willing to spend the whole $24 on sugar, he/she will purchase 24 pounds of store brand sugar. The alternative is to buy 8 pounds of producer brand sugar, and that is not a good deal.
c. How would your answer change if the price of store-brand sugar was $2 per pound and the price of producer-brand sugar was $3 per pound?
- The consumer would purchase 12 pounds of store brand sugar instead of 24, but he/she will still not purchase producer brand sugar since the difference in price is still too high. Remember that consumers view both types of sugar as perfect substitutes, so they will purchase the brand with the lower price.
Answer: Look farther into both options you have, whichever you need the most, pick that one
Explanation:
Answer:
As the knock-in was reach, it will receive the original investment plus the coupon yield: 1,060
Explanation:
<u>At maturity</u>
Because the knock-in was achieved, the customer can pick to recieve stock or cash
when the contract was made, the stock price was 50 so 1,000 are equivalent to:
1,000 / 50 = 20 shares
we multiply this by the market price.
20 x 25 = 500
between 500 in stocks and 1,000 in cash it will prefer 1,000
Then, the interest will be:
1,000 x 6% = 60
The traits and skills can help to explain the successful strategic leadership by <span>Gyosn are the below:
</span><span>Relationship in the middle of execution and system
</span>
Transparency
Communication
The CEO of Nissan and Renault is a champion among the most interesting pioneers in the private zone. Carlos Ghosn has made the affirmation of essential qualities as a pioneer. A champion among the most basic characteristics of Carlos Ghosn is addressed by the ability to get a handle on social differentiations. His own particular experience enables and sponsorships such a technique. He recognizes social complexities and even consolidates them in the legitimate society.
Answer:
The NPV of the project is $974.
Explanation:
The net present value is the today's value of a stream of cash flows. The net present value will be the sum of all the expected future cash flows from a project less the initial investment required for the project and it is used to evaluate the investment decisions.
The net present value of an investment project will be:
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial investment
or
If the cash flows are constant or of same amount through out, occur after the same interval of time and are for a defined period of time, they become an annuity and the NPV of such a project can be calculated by,
NPV = (Cash flow per period * Present value of Annuity factor) - Initial cost
The NPV of this project will be = (2000 * 2.4869) - 4000 = 973.8 rounded off to $974
