Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be used to purchase government bonds earning 5 percent, then how much money should Jan's hold?
A. $10,000
B. $6,000
C. $4,000
D. $8,000
Answer: D
Economics
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In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is
A) perfectly competitive. B) monopolistically competitive. C) equivalent to a monopoly because consumers think the products are different. D) equivalent to an oligopoly because consumers think the products are different.
Economics
Straight line pay for performance
a. Provides incentives to increase performance b. Eliminates the perverse incentive to hide information c. Does not link compensation to where the performance is relative to the budget target d. All of the above
Economics