Illiquid assets and rank them from most liquid to illiquid.

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Answer 1

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Students have asked these similar questions

At the 8:10 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 (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Answer 3

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Answer 4

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Answer 5

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 6

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 7

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Answer 8

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.