Economic Order Quantity is the optimal level of inventory where the inventory costs are the minimum. EOQ = (2AO/H)^(1/2).
What is Economic Order Quantity?Companies determine their ideal order size by performing a calculation known as the economic order quantity (EOQ), which enables them to meet demand without going overboard. To reduce holding costs and surplus inventory, inventory managers calculate EOQ.
The order size that minimizes the overall holding costs as well as ordering expenses in inventory management is referred to as the "economic order quantity," or "economic buying quantity." One of the first traditional production scheduling models is this one.
The following is the EOQ formula. EOQ is equal to the square root of 2 times demand times ordering cost)/carrying cost. Demand. The EOQ's assumptions state that the demand is unchanged. How much stock is used annually or how many goods are sold annually is the measure of demand.
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the trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contracts is called .
Marked-to-market trading involves the exchange of futures contracts in significant fiat currencies, and it provides price efficiency and transparency in addition to eliminating counterparty risk.
What Are Losses from Mark to Market?Mark-to-market losses, as opposed to actual security sales, are paper losses produced by an accounting entry.
When financial instruments are valued at their current market value rather than their purchase price, mark-to-market losses happen.
What is advertised with an example?simple illustration The "mark-to-market" value of an investor's 10 shares of stock, purchased at $4 per share, is equal to (10 shares * $6), or $60, but the book value might only be $40 (depending on the accounting rules being applied).
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what techniques should you use to cushion the bad news? check all that apply. suggest a compromise or an alternative. say whatever makes you appear as the ""good guy."" blame company policy. accentuate the positive.
Accentuate the positive and suggest a compromise or an alternative. The techniques we should you use to cushion the bad news
A purposeful set of rules designed to direct behavior and produce logical results is called a policy. A policy is a declaration of intent that is carried out through a method or protocol. Typically, a governing board inside a company adopts policies. Both subjective and objective decision-making can benefit from policies. Policies used in subjective decision-making typically aid senior management with choices that must be based on the relative merits of a variety of aspects, and as a result, are frequently challenging to assess objectively. An example of a policy used in this manner is the work-life balance policy. In addition, governments and other organizations have policies in the form of laws, rules, guidelines, administrative processes, rewards, and voluntary practices. Resources are frequently distributed in accordance with policy choices.
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belkin company provides medical care and insurance benefits to its retirees. in the current year, belkin agrees to contribute 5% of the employees’ $400,000 gross salaries to a retirement program. what is the amount of employee benefits expense for the current period?
The number of employee benefits expenses for the current period:
$17,500
(Explanation: 5% × $350,000 = $17,500).
An employee is a person who gets paid to paint for someone or a company. employees don't want to paintings complete time to be considered employees—they virtually want to be paid to paintings through an business enterprise (the person or commercial enterprise that will pay them).
An example of an employee is a sales partner at a retail save. for the reason that workers ought to whole tasks in a distinctive manner, which includes carrying a name badge and greeting the purchaser with specific phraseology, the employee is taken into consideration as an employee.
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true or false: store design and visual merchandising are elements of a retailer's communication mix.
The statement that, store design and visual merchandising are elements of a retailer's communication mix, is True.
What goes into a retailer's communication mix?The communication mix of a retailer refers to all the tools, and features that a company uses to be able to reach out to both its potential customers and its current customers about the products they have on offer or other services. The communication mix can include a wide variety of things ranging from product packaging to their social media pages and the like.
The designs of stores are another way that a retailer can communicate with people as this is shown by the unique designs of Apple stores. The store design aims to show a particular type of way that the company does things and so is in the communication mix. Visual marketing also counts in this communication mix for the very same reason.
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in an ideal competitive market, a.excludable goods are minimized. b.there are no depleteable goods. c.social surplus is maximized. d.external benefits are maximized.
In an ideal competitive market external benefits are maximized. In economics, the term "competitive market" describes a market where there are many buyers and sellers and where no one buyer or seller has a significant impact on the market.
Competitive markets have many buyers and sellers, few entry barriers, and uniform products. A market with intense competition is one with a competitive market structure. It is also referred to as a completely competitive market because it has lots of customers, uniform products, open entry and exit, etc. A market that is competitive is one in which many manufacturers compete with one another to meet the demands of many consumers.
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A market index is an unmanaged grouping of stocks that has been identified as representative of some aspect of the stock market. What is true of the Dow Jones Industrial Average?
It is an actively managed index designed to outperform the market.
The index is market weighted based on market capitalization.
It is designed to follow the broad bond market.
It consists of a small number of stocks of the largest US companies from a variety of sectors of the economy.
It consists of small number of stocks of largest US companies from variety of sectors of economy is true of Dow Jones Industrial Average.
What is an economy?A region's economy is its capacity for the creation, exchange, and consumption of products and services. Individuals, companies, governments, and organizations all qualify as economic agents. Economic transactions take place when two organizations or persons agree on the value or price of the good or service being exchanged, which is typically expressed in a particular currency. Money transactions, however, only make up a minor portion of the economic world. Production, which uses natural resources, labor, and capital, is what drives economic activity. It has changed over time as a result of technology, innovation (new goods, processes, and markets), market expansion, market diversity, niche market growth, and increased revenue-generating functions, such as those that create intellectual property and changes in labor relations.
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assume that one year ago you bought 100 shares of a mutual fund for $33.90 per share, you received a $0.42 per-share capital gain distribution during the past 12 months, and the market value of the fund is now $41.85. calculate the total return for this investment if you were to sell it now.
The total return for this investment, if it were sold now, is $837.
What is the total return on investment?The total return on investment is the difference between the sales proceeds at current market value plus the capital gain minus purchase (investment) costs.
To determine the total return, we can evaluate the variables separately or compute the per-share difference and then multiply by the number of shares.
The number of shares in a mutual fund = 100
The purchase per-share price = $33.90
Per-share capital gain distribution = $0.42
The current market value of the fund per share = $41.85
The total returns = (Current value + Capital Gain - Purchase price) x 100
= ($41.85 + $0.42 - $33.90) x 100
= $837
Total sales proceeds (if sold now) = $4,185 ($41.85 x 100)
Total capital gain distribution = $42 ($0.42 x 100)
Purchase cost = $3,390 ($33.90 x 100)
The total returns = $4,185 + $42 - $3,390
= $837
The total returns can also be expressed as a percentage, as follows:
24.69% ($837/$3,390 x 100).
Thus, the total returns realized from the purchase of the mutual fund is $837, or 24.69% of the investment cost.
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the spread (difference) between the yield on conventional bonds and the yield on indexed bonds with the same maturities is an indication of the expected inflation rate.
Yes it is true that the spread (difference) between the yield on conventional bonds and the yield on indexed bonds with the same maturities is an indication of the expected inflation rate.
The yield on a bond is associated with its price. The cash flows and the requisite yield are used to determine a bond's price. A bond's yield is determined using its cash flows, market price, and accrued interest. a kind of bond where the interest rate or other payments are linked to an index and change in response to the rate of inflation: At this time, indexed bonds have real yields of about 2%. Government bonds with an inflation index have been released.
An inflation-indexed security ensures a real return even though inflation is often unfavorable for the profitability of any fixed-income instrument since it frequently raises interest rates.
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does stage i of the production process ends at the point where the law of diminishing returns occurs
True. When diminishing returns begin to take effect, stage I comes to a close and stage II begins. This is due to the marginal product declining as a result of decreasing returns.
When does production reach a point of diminishing returns?At the end of this process, the product has reached its maximum value, at which point the marginal product is zero. The point in this stage where production is at its best. After this point, if the variable factor is added in more units, the overall output will start to decrease.
When does the stage of declining returns come to an end?Stage 2
As a result, this phase is referred to as the phase of declining returns. When the total product reaches its maximum value and the marginal product reaches zero, this stage is complete.
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To counter the power of the veto, the Framers gave Congress the veto ______, which is the power to overturn a presidential veto with a two-thirds vote in each chamber.
a) Approval
b) Commutation
c) Override
d) Proclamation
e) Check
The response to the preceding assertion is C. In order to counteract the power of the veto, the Framers granted Congress the power to override a presidential veto with a two-thirds majority in each chamber.
Describe the powers and objectives of the veto.A bill or joint resolution may be overruled by the president in order to keep it from becoming law. A law passed by Congress must be signed by the president within 10 days (excluding Sundays). In the event of a conventional veto, the President usually sends a note explaining his or her reasoning and returns the bill to the chamber in which it was first submitted. Only a two-thirds majority in the Senate and the House is required to override this veto. In this case, despite the President's objections, the bill became law. If Congress adjourns during the ten-day period, there is a pocket veto. The bill cannot be sent back to Congress by the president. The legislation cannot be overturned by Congress because of the president's pocket veto, which prevents him from signing it.
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the three key labor market decisions that you make do not include what kind of work to do. how many hours to work. how many workers to hire. whether to work.
The three key labor market decisions that you make do not include how many workers to hire.
The labor market functions similarly, but the roles are reversed. Firms demand labor in the labor market, and individuals like you and me supply that labor. Employers require labor because workers are an essential component of the manufacturing process.
Because employment status is one of the key determinants of poverty exist in developing countries, labor markets play a critical role in determining economic and social progress. In the end, having a decent, well-paying, and secure job is the most sustainable way to increase income and consumption levels.
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for individuals, stocks and bonds ar a better investment choice than mutual funds, because money is pooled from many investors for stocks and bonds
For individuals, stocks and bonds ar a better investment choice than mutual funds, because money is pooled from many investors for stocks and bonds.
A mutual fund affords diversification thru publicity to a multitude of stocks.
The reason that proudly owning shares in a mutual fund is encouraged over proudly owning a single inventory is that an individual inventory consists of more threat than a mutual fund. This type of risk is recognised as unsystematic risk.
What is better shares bonds or mutual funds?Bonds are the most conservative option, with a guaranteed return if held to maturity. However, the returns are typically lower than with mutual funds, stocks, and actual estate, which raise a more inherent risk.
Mutual funds assist furnish immediate diversification given that they invest throughout dozens or every now and then lots of individual stocks, bonds, or other securities. Further, records shows that giant businesses of stocks tend to ride out market volatility higher than character stocks.
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https://brainly.com/question/4521829#SPJ4When a manager accepts a project because the net operating income from the investment exceeds the minimum acceptable profit based on required rate of return, the investment was evaluated based on __ __.
When a manager accepts a project because the net operating income from the investment exceeds the minimum acceptable profit based on the required rate of return, the investment was evaluated based on residual income.
Residual income is the amount of money an individual or business has left after paying all expenses. A company's residual income is the capital left over after they complete all their financial obligations, such as the cost of raw materials and utilities. Overall, the more residual income you have, the more financial freedom you have. Residual income refers to the calculation of a company's financial outcomes to measure operating performance.
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assume dawn's budget constraint is represented in the graph. if dawn's income increases and she spends all her income on these two goods, then dawn's total utility from consuming these two goods will likely:
Based on Dawn's budget constraint represented in the graph, if Dawn's income increases and she decides to spend all her income on these two goods, then Dawn's total utility from consuming these two goods will likely to increase as much as the income increases.
Budget constraint represents a consumer's limited consumption pattern because of the limitation of income. Budget constraint is affectedd by a consumer's income and product's price.
Utility is the total satisfaction or benefit a consumer gains from consuming a good or service. Rationally, a consumer will strive to maximize their utility. Consumer's utility could be used to measre or quantify products set in budget constraint.
Based on the case, we can assume that for Dawn, the utility of Burritos is 8 and Salad is 4. This information is supported with Dawn's budget constraint graph.
When Dawn's income increases, the budget constraint will also move to the right and allows Dawn to purchase more goods. The units purchased will increase as much as the income increase.
The increase in units purchased will also increase the goods' utility. The goods total utility will increase in line with the increase of units of purchased.
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before running a process improvement experiment, a project manager needs to first identify processes to change and leave unchanged. what’s the experiment-related term for the unchanged process?
Before conducting a process improvement experiment, a project manager must first identify the processes to alter while leaving the Control group alone.
What are the primary responsibilities of a project manager?Project planning and management implementing any delegation and project assurance tasks within agreed-upon reporting structures As needed, prepare and maintain project, stage, and exception plans. project risk management, including the creation of contingency plans Within agreed reporting structures, the project manager is responsible for designing and implementing appropriate project management standards for incorporation into the NI Gateway Review Process, managing the production of required deliverables, planning and monitoring the project, implementing any delegation, and using project assurance roles.
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short-term financing is more important to a small business than long-term financing because . multiple choice question. inventory needs are long-term and critical for small business only corporations can obtain long-term funds small businesses are more concerned with funding day to day operations long-term funds are impossible to obtain for small business
Short-term financing is more important to a small business than long-term financing because small businesses are more concerned with funding day to day operations.
For a small firm, short-term financing is more crucial than long-term financing since they are more concerned with supporting ongoing operations. Smaller businesses may experience greater cash flow issues than bigger ones, such as limited access to credit card financing.
With the support of short-term financing, you can make sure you have the resources necessary to cover all of these expenses and build a solid financial foundation for your business. These can be paired with small company loan programmes from the government, other loans, savings, or any other funds you may already have.
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If the project scope needs to change, it is critical to have a sound _______ in place that records the change.
Select one:
a.
change control process
b.
requirements document
c.
statement of work
d.
project charter
e.
WBS
If the project scope needs to change, it is critical to have a sound change control process in place that records the change.
What is the change control process?Change control is the procedure by which all requests to alter the baseline that has been accepted for a project, program, or portfolio are gathered, assessed, and either approved, denied, or deferred.
What different kinds of change control are there?Developmental, transitional, and transformational change management are the three categories under which directed change is divided. In order to increase participation, lower resistance, and facilitate acceptance, various types of change call for various techniques and approaches, so it is crucial to recognize this.
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when the seller in a contract for sale fails to perform (e.g. breach of contract, nonperformance, or default), the buyer has a variety of remedies. one such remedy is to appeal to the court to force the defaulting seller to carry out the contract. this remedy is most commonly referred to as suing for:
A judicial appeal to compel the non-compliant seller to uphold the contract is one such remedy. Most people refer to this treatment as suing for specific performance. Here option A is the correct answer.
A court order for "specific performance" requires the party that violated the agreement to carry it out in full. When no alternative remedy fully compensates the opposite party, the courts may order a certain service.
A contractual remedy in which the court requires a party to as nearly as possible carry out its commitment because monetary damages are in some way insufficient to make up for the injury. ordered most frequently in situations involving rare chattels and real estate.
Complete question:
When the seller in a contract for sale fails to perform (e.g., breach of contract, nonperformance, or default), the buyer has a variety of remedies. One such remedy is to appeal to the court to force the defaulting seller to carry out the contract. This remedy is most commonly referred to as suing for:
A. specific performance.
B. damages.
C. earnest.
D. recession.
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the brinton clothing company wants to create and build brand awareness. it would use advertising. multiple choice persuasive push reminder pull informative
The Brinton clothing company would use informative advertising to increase brand awareness.
Informative advertising appeal to potential clients with facts rather than feelings. These advertisements frequently incorporate information about a product that highlights its advantages over rivals or illustrates its worth to consumers. If a company updates an existing product or is compelled by law to disclose specific information about it, it may also utilize informative marketing.
Making customers aware of new or improved items can frequently be accomplished using informative marketing. Businesses can employ educational commercials to highlight the most crucial details about their goods and show how valuable they are.
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Which of the following types of reports generated by a point-of-sale system provides an analysis of each server in terms of guest count, total revenue, and average revenue per guest?
a. daily server productivity report
b. transaction summary report
c. transaction audit report
d. open check report
Which of the following point-of-sale system reports provide a breakdown of each server's daily server productivity report, total revenue, and visitor count?
Describe a server?A program or apparatus that offers a remote server as well as its user, often known as the client, is referred to as a server. The actual computer that a servers program runs on in a data center is also commonly referred as a server.
Can a computer act as a server?When a computer has an internet service and a web server program installed on it, it can in fact serve as a server. You can enable people to access your computer by installing a web server on it.
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when engaged to express an opinion about the effectiveness of a nonissuer’s internal control over financial reporting, the auditor should
The auditor should Obtain written representations from management acknowledging responsibility for establishing and maintaining the internal control system.
The auditor's job entails scrutinizing a company's financial documents to ensure they are accurate and in accordance with the law. Auditors examine the financial statements of businesses and other organizations to ensure that they are accurate and in compliance with the law.
Accountants are in charge of preparing financial documents, overseeing day-to-day bookkeeping for a company's operations, and/or preparing and filing tax forms. Auditors check the accuracy of financial statements and tax returns and may look for clues as to why some numbers don't add up.
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keith, a supervisor, believes that employees should participate in pay-related decisions. he says that it will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. which statement weakens this argument?
Employees will prioritize their own interests over the interests of the company when making decisions.
What are incentive plans?An incentive program is a structured plan designed to encourage or promote certain actions or behaviors by a certain group of individuals over the course of a predetermined amount of time. In instance, incentive programs are utilized in sales to entice and keep customers as well as in business management to inspire personnel.
Employee behavior is characterized as a person's response to a specific scenario at work. Employees must act responsibly at work in order to sustain a positive work environment as well as the respect and admiration of their coworkers. One must follow the rules and regulations at work. Although employees generally act in the organization's best interests, they also have other goals in mind, such as increasing their income, progressing their careers, taking time off, spending more time with their families, etc.
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Cullumber Company reports the following information (in millions) during a recent year: net sales, $11,898.0; net earnings, $396.6; total assets, ending. $5,825.0, and total assets, beginning. $4,090.0.
(a) Calculate the
(1) return on assets. (2) asset turnover, and (3) profit margin.
According to the query, (1) asset turnover is 2.43, (2) return on assets is 0.07161, and (3) profit margin is 0.02932.
(1) The following chart shows how the return on total assets was calculated:
Return on assets is calculated as Net income divided by the average asset value, which in this case is $4,957.50. Net income for the year was $355.
By using these figures to the calculation above, the ratio would be $355 divided by $4,957.50, or 0.07161.
(2) The formula for calculating the assets turnover is displayed below:
Total asset turnover equals ($12,105 $4,957.50) / (Net Sales Average of Total Assets) = 2.43
(3) The following chart shows how the profit margin was calculated:
(Net earnings - net sales) / 100 = ($355 - $12,105) / 100 = 0.02932
What does "return on assets" mean?Return on assets, a profitability metric, displays the potential profit a company could realise from its assets. Return on assets (ROA) measures a company's ability to profitably manage all of the assets listed on its balance sheet.
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as part of her project, an individual is required to work with someone outside of her department in order to complete some tasks. the communications department in her office agreed to help create some publicity slides for their new product, but in doing so, disrupts the timeframe of one of their fellow team members in their own department. what should the individual do?
As an individual, communicating with outsiders for project completion will help the company grow and understand its needs and desires. However, communicating with outsiders should not affect the fellow team members.
A corporation, commonly referred to as a co., is a legal entity that represents a group of individuals with a certain purpose, they are natural or legal or a combination of both. The members of the company work together for a common purpose to achieve clearly set goals.
Businesses come in many shapes and sizes, including nonprofits, for-profit businesses, financial institutions, banks, and programs. In order for the company itself to have limited liability when members perform or fail to perform their obligations under the incorporation or public disclosure policy, a corporation can be incorporated as a legal entity.
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your company sells $47,000 of one-year, 12% bonds for an issue price of $42,500. the journal entry to record this transaction will include a credit to bonds payable in the amount of:
The journal entry to record this transaction will include a credit to bonds payable in the amount of $47000.
Bond payable - Cash account
= 47,000- 42,500
= 45,00
Journal entry:
Cash account Dr. 42,500
Discount on bond payable. Dr. 45,00
To Bond payable 47,000
Bonds Payable is a liability that the company issues when it needs a significant quantity of finance. It can be given with or without a discount, and it can be paid in full at a certain date or in instalments.
The balance sheet's liabilities section contains the "Bonds Payable" line item. Bonds payable are regarded as liabilities because they are financial instruments that foresee future cash outflows, such as interest costs and principal repayment.
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The relationship between the prices of the underlying stock, a call option, a put option, and a riskless asset is referred to as the _____ relationship.A. put-call parityB. covered callC. protective putD. straddleE. strangleA. put-call parity
Put-call parity defines the relationship between calls, places and the underlying futures contract.
This principle requires that the places and calls are the same strike, equal expiration and have the equal underlying futures contract.
What is meant by put and call?A "put" or put option is a proper to promote an asset at a predetermined price. A "call" or name option is a right to purchase an asset at a predetermined price. If merchants are buying extra puts than calls, it indicators a upward jostle in bearish sentiment.
Why it is known as put-call in options?If you buy an options contract, it can provide you the right however not the responsibility to buy or promote an underlying asset at a set price on or before a certain date. A call option offers the holder the right to buy a stock and a put choice offers the holder the right to sell a stock.
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https://brainly.com/question/17112313#SPJ4Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a product. O generic O sought O specialty O shopping O nondurable
Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a specialty product.
A product is an item offered for sale. Products are services or items. It can be in physical or virtual or cyber form. All products are made at one price and sold at one price. Calculated prices vary by market, quality, marketing, and target segment.
Commodities are classified into four categories based on consumer habits, prices, and product characteristics: consumer goods, commodity goods, specialty goods, and nondurable goods.
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Calculate the resulting change in GDP for each of the following MPCs when the government increases its spending by $250 billion.
Instructions: Round your answers to one decimal place.
a. The marginal propensity to consume (MPC) = 0.2.
The change in GDP is $ _______billion.
b. The marginal propensity to consume (MPC) = 0.5.
The change in GDP is $______ billion.
c. The marginal propensity to consume (MPC) = 0.8.
The change in GDP is $ _____billion.
d. Comment on the relationship between the MPC and the resulting change in GDP—as the MPC rises, does its effect on GDP (increase or decrease)?
As the MPC rises, its effect on GDP (Click to select)(stays the same decreases increases)
a. The marginal propensity to consume (MPC) = 0.2.
The change in GDP is $ 62.5 billion.
b. The marginal propensity to consume (MPC) = 0.5.
The change in GDP is $ 250 billion.
c. The marginal propensity to consume (MPC) = 0.8.
The change in GDP is $ 1000 billion.
d. As the MPC rises, its effect on GDP increases.
GDP multiplier = 1 / (1 - MPC)
Current GD = $ 250
When MPC = 0.2
GDP multiplier = 1/(1-0.2)
=1.25
The change in GDP is $ (1.25 * 250) - 250 = 312.5 - 250 = 62.5 billion.
When MPC = 0.5
GDP multiplier = 1/(1-0.5)
=2
The change in GDP is $ (2 * 250) - 250 = 500 - 250 = 250 billion.
When MPC = 0.8
GDP multiplier = 1/(1-0.8)
=5
The change in GDP is $ (5 * 250) - 250 = 1250 - 250 = 1000 billion.
gross domestic product
one of the maximum common is GDP, which stands for gross home product. it's miles often referred to in newspapers, at the tv news, and in reviews by using governments, valuable banks, and the business network. It has become widely used as a reference point for the health of national and international economies.
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if the management team of a company decides to increase the dividend payment for the current year select one: a. the stock price should not be impacted because nothing fundamental about the company has been changed, and as there will be less funds generated to pay out future dividends. b. the stock price should decline because the present value will be lower c. the stock price should rise because the present value will be higher d. the discount rate will change because it will change the risk of the cash flows.
If the management team of a company decides to increase the dividend payment for the current year because the stock price should not be impacted because nothing fundamental about the company has been changed, and as there will be less funds generated to pay out future dividends.
Companies that raise their dividend payments reassure analysts and investors that they may expect further growth and profitability. Increases in dividends as a method of distributing earnings to shareholders may draw new investors who want income in addition to capital gains for their portfolio.
Companies boost dividend payments for a variety of reasons, some of which are more advantageous than others. Companies that generate larger profits, for instance, could distribute their success to shareholders. By doing this, stockholders are rewarded for their investment, and it encourages new investors to put their money where it will grow the fastest.
Hence the correct option is A
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jesse and walt are considering going in together on the purchase of a new rv. if they buy the rv, then they will each have equal access to it. jesse's reservation value of the rv is $14000. walt's reservation value is $20000. 1st attempt part 1 (1 point) suppose the rv is priced at $27000. in which of the following cases will jesse and walt buy the rv? choose one or more: a. both walt and jesse attempt to free ride on the other, and neither reports his reservation value truthfully. b. both jesse and walt both truthfully reveal their reservation values. c. walt reports his reservation value truthfully, but jesse free rides on walt and does not report truthfully. d. jesse reports his reservation value truthfully, but walt free rides on jesse and does not report truthfully. part 2 (1 point) now suppose the price of the rv is $11500. in which of the following cases will jesse and walt buy the rv? choose one or more: a. jesse reports his reservation value truthfully, but walt free rides on jesse and does not report truthfully. b. both walt and jesse attempt to free ride on the other, and neither reports his reservation value truthfully. c. walt reports his reservation value truthfully, but jesse free rides on walt and does not report truthfully. d. both jesse and walt truthfully reveal their reservation values.
Jesse reports his reservation value truthfully but wants free rides on Jesse and does not report truthfully. Option D.
Both Jesse and Walt honestly reveal their reserved values. With a high RV value of 29000, this option makes more sense than the other three. So Jessie and Walt have to actually say no, even though they know they can't contribute.
Reservation value is the worst point at which a negotiated agreement is accepted. For example, it means the lowest amount a seller is willing to accept and the highest amount a buyer is willing to accept. The reservation price is the lowest negotiable price.
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