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liraira [26]
2 years ago
8

In May 2019, the FBI arrested a group of mafia leaders for a series of scams that cost investors millions. The claim was that th

e mob bought large stakes in small companies and then bribed and coerced brokers to promote the stocks at inflated prices. This is known as _____.
Business
1 answer:
posledela2 years ago
4 0

The form of illegitimate business that is being practiced by this arrested group of mafia leaders is known as a Ponzi scheme.

<h3>What is a Ponzi scheme?</h3>

A Ponzi scheme can be defined as a form of fraudulent business in which the owners lure unsuspecting victims (investors) to invest certain amount of money with the promise to pay them a certain percentage as returns, especially by taking more money from new set of investors.

This ultimately implies that, a Ponzi scheme is fostered by the payment of quick returns to the earlies investors, so as to lure other investors. Also, it may involve paying bribe and coercing brokers to promote the their stocks at inflated prices.

Read more on Ponzi scheme here: brainly.com/question/15078906

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Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

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Answer:

<u>30</u>

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