The government of west tarragon declared the lowest unit of its currency to be redundant from the next quarter. the polka, which is the lowest denomination of the currency in west tarragon, is a copper coin that has been in circulation for the last 40 years. the government justified its decision by saying that the average consumer by pushing up the price level. which of the following, if true, would strengthen jenny's claim that taking the polka out of circulation will cause inflation? a. the prices of imported raw materials in west tarragon are expected increase considerably during the nest quarter. b. if polka is made redundant, the system will only have coind of three denominations. c. recent market analysis has projected an increase in cashless transactions by almost 40% by the end of this year, d. many large retail firms in west tarragon have already stopped accepting the polka. e. most cash purchases are likely to be rounded off to a higher unit of the currency once the polka is taken out to the system.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?