Answer: The answer that is correct is the last one, which is shape.
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Answer:
d. $6,500,000 dollars
Explanation:
Hedging is a strategy used by investment firms that want to minimize the risk of loosing their investments, so what they basically do is giving up the actions and investments and get some money in return, the exercise price is what they will pay you for your total investment, and the premium fee is somthing you have to pay to hedge an investment:
So you multiply the 12.5 million by .55 which is the amount you´ll receive, and withdraw form that the premium:
12,500,000x.55=$6,875,000
12,500,000x.03=$375,000
$6.875,000-$375,000= $6,500,000
The firm will receive $6,500,000 dollars.
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The demand curve of a monopolistically competitive firm A) is horizontal because the firm must cut its price to sell more.
- The demand curve of a firm that is perfectly competitive is horizontal at the market price.
- As a result, every unit sold will result in it receiving the same price.
- The difference in total revenue from selling one more unit at the constant market price is the marginal revenue that the company receives.
- A monopolistically competitive firm's perceived demand curve slopes downward, indicating that it sets prices and selects a mix of quantity and price.
Why is the demand curve in monopolistic competition more elastic than a monopoly?
Firm's demand curve under monopolistic competition is more elastic than under monopoly because of availability of close substitutes under monopolistic competition.
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