Answer:
The answer options for this question are as follows
A) moral hazard
B) adverse selection
C) costly state verification
D) agency
The correct answer is A) moral hazard
Explanation:
Moral hazard corresponds to opportunistic behavior where one of the parties seeks their own benefit at the expense of the other being unable to observe or be informed of their behavior.
Moral hazard appears in markets with asymmetric information. One of the parties has private information about their conduct while others cannot obtain this information.
Given this asymmetry, individuals take greater risks, make less efforts or take advantage of certain circumstances because they know that the cost of their actions will fall on other people.
Answer: High degree of similarity to competitors products.
Explanation:
In a perfectly competitive markets, the producers are price takers as the producers cannot influence the prices of goods in a market.
In such cases, producers are forced to sell the goods at current market prices. Good sold in the market are similar and prices are usually the same. If a producer influences his or her price by setting a price above the equilibrium price in the market, the customers will move and purchase the product from other producers.
Answer:
voluntary contribution $97150
Explanation:
data provided:
tax rate: 2.3%
reserve ratio- 8-10%
average payroll = $971,500
Assume voluntary contribution ="X
"
From the information given in the question we have
%
here we have taken max reserve ratio i.e. 10%
= $97150
we know that, from the question present contribution minus benefit is equal to $93,500
hence, extra contribution = 97150 - 93500 = $3650
extra contribution = $3650
Answer:
Break-even point (dollars)= $21,667
Explanation:
Giving the following information:
Blythe Company has provided the following information: Sales price per unit $ 45 Variable cost per unit 18 Fixed costs per month $13,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 13,000 / [(45 - 18)/45]= $21,667
Do you mean a bank account or a literal bank?
