[youshaali]

One more thing which I need to ask that in 2nd statement why Tabular method and why not Algebraic method and why not both method ?

[youshaali]

Hello tutor!
Thanks for the responses.
However, regarding the second statement in Monopoly I thought pricing won’t impact on demand required so then why tabular method is good in Monopoly.

[youshaali]

The following statements have been made about the tabular method used to establish
an optimum price:
Which of the following statement(s) regarding Jewel Co’s fixed costs is/are correct?

1) With the tabular method, there must be a consistent relationship between price
(P) and demand (Q), as well as a close relationship between demand (Q) and
marginal costs (MC).
2) The tabular method is only suitable for companies operating in a monopoly.

Only 2nd statement is correct.

This is another question of Jewel co. case.
I understand that in tabular method consistent relationship is not necessary however, I’m not able to understand the 2nd part of 1st statement in which they are saying that close relationship b/w demand and MC.
Moreover, I’m not able to understand why 2nd statement is correct.
Could you please help me to figure it out.
Thank you!!

[youshaali]

Thank you tutor!!

[youshaali]

But they are saying only takeover bid and raising finance are purposes to value business.

[youshaali]

Thank you sir.
I will watch it surely.

[youshaali]

But I have seen many questions where the word ‘undercast’ ‘miscast’ and ‘overcast’ is used and they mean that error is occured in the TOTAL which will affect only receivables/payables and not sales/purchases.

[youshaali]

So error #1 will effect only control acc. ?
And one more thing, what will be imbalance due to the error #1 ?

[youshaali]

Okay sir Thank you.

[youshaali]

So how can demand & supply and social cost & externalities can be related with each other ?
I have understand point 1 & 3 but statement 2 is not getting in my head.

[youshaali]

Yes you are right but managerial reward scheme must be based on achievement of SHAREHOLDER’s objective not all stakeholders.
Furthermore, it is in practice not possible to kept ‘Happy’ all stakeholders.

[youshaali]

Thank you sir.

[youshaali]

Thank you sir now I understood clearly.

[youshaali]

Yes I already understood the logic of the answer but my question is why should not we discount the scrap proceeds by real discount rate ?

[youshaali]

Thank you sir I clearly understand your example.
However, could you please give me one more example of non-conventional cash flows with single IRR please so that I will understand properly.

[youshaali]

Thank you sir !!

[youshaali]

Thank you sir for clearing my confusion

[youshaali]

Thank you sir for make it clear to me.

[youshaali]

Okay now I understood it clearly.

I will watch your lectures surely.

Thank you so much 🙂

[youshaali]

Exactly that’s what I wanna ask that is this also acceptable to use holding cost as $0.63 in part (i).
Furthermore if examiner saying that we can use $0.63 as holding cost in part (ii) then why I’m getting different EOQ and different savings in Part (ii).
According to examiner, savings due to use of EOQ would be $17,199 but my savings are $20,000 (something).
If you want I can show you my workings for part (ii).

[youshaali]

I mean to say what does these two interest rate represent and why we use the difference of them ?

[youshaali]

Could you please explain it further in more detail ?

[youshaali]

Thank you sir

[youshaali]

But in the case of non-recourse factoring, if factor didn’t collect cash then when will factor pay money to the client ?

[youshaali]

Just like non-recourse factoring ?

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