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vekshin1
2 years ago
3

A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf ga

me that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely:a.rent the movie instead of playing miniature golf. b.play miniature golf instead of renting the movie. c.be indifferent between the movie and the miniature golf game. d.not have enough basis for making a utility-maximizing decision.
Business
1 answer:
pentagon [3]2 years ago
6 0

Answer:

The correct answer is option b.

Explanation:

The direct cost of a movie is $4.

The opportunity cost of 2 hours of time is $12×2= $24.

The total cost of watching the movie will be $24 + $4 = $28

The direct cost of playing a game of miniature golf is $13.  

The opportunity cost of 1 hour time in playing is $12.

The total cost of playing golf is $13 + $12 = $25

The marginal utility derived from both are same.  

Since the cost incurred in playing golf is comparatively lower, a rational consumer will consume play golf instead of renting a movie.

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Mel’s Diner is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegeta
Katyanochek1 [597]

Answer:

The answer is: Mel´s Diner is engaging in a Niche Marketing Strategy

Explanation:

A niche marketing strategy takes place when you concentrate all your marketing efforts on an specific and well defined segment of the population.  

Mel´s Diner is differentiating themselves form all the other restaurants in their area by offering vegan and vegetarian dishes.

8 0
2 years ago
What should be the price of a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate i
katrin [286]

Answer:

$43.75

Explanation:

Dividend discount model with zero growth assumes that the Company shall continue to pay the same amount of dividend in infinity. The formula for calculating price of such stock is

Price = Annual Dividend / Discount rate

Price = $3.5 / 8%

Price = $43.75 / per share

3 0
2 years ago
Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value o
rusak2 [61]

Answer:

D. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.

Explanation:

One explanation of the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond, is that <u>the market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.</u>

According to the definition of yield to maturity, it takes into consideration the coupon rate (i.e. the interest amount earned per year) for the number of years left to maturity, it is often higher because it treats the amount earned each year as being re-invested.

<u>Therefore the amount of yield to maturity will fall as the time to maturity nears and will approach the coupon rate</u>

Secondly, A bond's par value is the dollar amount it will be worth when it reaches maturity.

Before its maturity date, the bond may sell for more than par value on the secondary market as the yield it pays becomes more attractive to buyers.

<u>Therefore the difference between par value and market value is the yield. hence as maturity nears, yield to maturity falls and market value approaches par value because the bond is what its par upon maturity.</u>

5 0
2 years ago
Read 2 more answers
Jasmine and her husband, Arty, have been married for 25 years. In May of this year, the couple divorced. During the year, Jasmin
Zinaida [17]

Answer:

Single

Explanation:

Under United States federal income tax law, filing status determines which tax return form an individual will use and is an important factor in computing taxable income.

There are five possible filing status categories:

single individual,

married person filing jointly or surviving spouse,

married person filing separately,

head of household and a qualifying widow(er) with dependent children.

Dexter does not qualify as Jasmine's dependent due to his age and his income so Jasmine must file Single for the year.

7 0
2 years ago
Company X is planning to implement rule based access control mechanism for controlling access to its information assets, what ty
ozzi

Answer:

Discretionary Access Control

Explanation:

Discretionary Access Control -  it is a type of restriction or permission of the object that is initiated by the owner of the object. it is Discretionary because the user can transfer object classified information to other users.

it grants and permits full access of object that is created by the user and it may allow or restrict sharing of data which object made to others.

4 0
2 years ago
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