Answer:
E. Ownership
Explanation:
As we know that
The utility refers to the satisfaction level of the consumer while consuming the goods
In addition, The utility are of four types i.e form, place, possession, and the place
So according to the options given in the question, the last option is correct i.e ownership
Hence, the first four options are wrong.
Answer:
-0.10
Explanation:
To calculate this, we us the formula for calculating elasticity of demand (E) relevant for the demand equation as follow:
E = (P / Q) * (dQ / dP) .............................. (1)
Where,
Q = 30
P = 90
E = -0.3
dQ / dP = b = ?
We then substitute all the value into equation (1) and have:
-0.3 = (90 / 30) * b
-0.3 = 3 * b
b = -0.3 /3
b = -0.10
Therefore, appropriate value for the price coefficient (b) in a linear demand function Q is -0.10.
NB:
Although this not part of the question, but note that how the linear demand function will look can be obtained by first solving for the constant term (a) as follows:
Q = a - 0.10P
Substituting for Q and P, we can solve for a as follows:
30 = a – (0.1 * 90)
30 = a – 9
a = 30 + 9 = 39
Therefore, the linear demand equation can be stated as follows:
Q = 39 – 0.1P
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
Answer: A. $365,896
Explanation:
The Contribution margin per unit is the Sales less the variable costs.
At the breakeven point, contribution margin should equal fixed assets.
Contribution margin
= 13.10 * 18,311
= $239,874.10
Contribution Margin - Fixed Assets
= 239,874.10 - 148,400
= $91,474.10
As there should be no profits, the $91,474.10 will be a cost as well which in this case is the depreciation per year.
As the fixed assets are depreciated over 4 years, the accumulated depreciation will be the costs;
= 91,474.10 * 4
= $365,896.40
=$365,896
Answer:
b. Economic depreciation is often tied to physical deterioration.
Explanation:
Based on the information provided within the question it can be said that the option that best describes this is Economic depreciation is often tied to physical deterioration. This is because physical deterioration refers to the loss of value that an asset has as it ages. Therefore as an asset's value decays this causes economic depreciation as it can no longer buy the same amount of goods and services in the market as before.
