The following data are available pertaining to Household Appliance Company's retiree health care plan for 2021: Number of employees covered 2 Years employed as of January 1, 2021 3 [each] Attribution period 25 years Expected postretirement benefit obligation, Jan. 1 $ 50,000 Expected postretirement benefit obligation, Dec. 31 $ 53,000 Interest rate 6 % Funding none Required: 1. What is the accumulated postretirement benefit obligation at the beginning of 2021
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Ответ:
The statements about the market that are true are:
1) The cupcakes are being sold below their equilibrium price. This is true because we can see there exists excess demand which won't exist at the equilibrium price.
3) The customers who receive cupcakes are the customers with the highest willingness to pay for cupcakes. This is why they are standing in the queue even before the bakery opens.
4) The bakery is not using price as the only means if allocating cupcakes to its customers. It is also using time as a factor as only those receive cupcakes who come early.
(2) and (4) are false because they are maximized only at the equilibrium level.