Answer: True
Explanation:
An Oligopolistic market is one where the suppliers are very few in number. Cooperation is indeed difficult in such markets as they are motivated by self-interest to try to make more profits than their competitors.
This usually leads to an undesirable outcome. For instance, if two oligopolistic firms agree on a price to sell goods, one of them might decide to sell at a lower price in order to gain more market share. This will cause the other firm to reduce its prices as well which means that both companies would be worse off than when they started.
Answer:
1. Betty ; 2. Betty ; 3. Candies
Explanation:
Absolute Advantage is when one can produce more output of a good per unit of input , comparatively than other .
Comparative Advantage is when one can produce a good's output by comparatively lesser opportunity cost (other good sacrifised) than other .
AI : Chocolates = 10 , Candies = 5
Betty : Chocolates = 30 , Candies = 10
As it can be seen : Betty can produce both of more - chocolates (30) & candies(10) than AI (10,5) . So, it has Absolute Advantage in both - Candies & Chocolates.
However, AI is twice more productive in chocolates than toffees (10,5) ; but Betty is thrice more productive in chocolates than toffees (30,10). Comparatively, Betty is more productive in Chocolates. So opportunity cost of Chocolate in terms of sacrifised toffees is less for Betty 0.33 (10/30) than AI 0.5 (5/10).
So, trade between them would be : Betty selling its comparative advantage good Chocolate , AI selling its less comparative disadvantage good Candies.
The alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. in short the production possibility frontier shows the maximum output possibilities for two given goods. It makes the assumption that all inputs are utilized efficiently.
Answer:
D
Explanation:
The risk premium is the difference in interest rate between two parties. It can also be defined as the overprice that a country pays to be financed by markets, in comparison with other country. The risk premium is popular in the bonds market. For example, country A has bond interest rate of 4% and country B has bond interest rate of 6%, the risk premium is the difference between both interest rates: 2%. We can conclude that country B is riskier than country A because it offers a reward to investors (2% more) to acquire their debt.
According to this, the risk premium is the maximum amount that a decision maker needs to compensate risk. The risk premium is defined by how risky a country is. (I would say that it is the minimum amount needed to compensate risk, but this is the answer that better fits with the risk premium definition).
Answer:
$360
Explanation:
The computation of the depreciation deduction during the first year is shown below:
= Basis of the camera × given percentage × weightage
= $3,000 × 60% × 20%
= $360
Since the 60% is used for business and 40% used for personal
And there is a recovery period of assets of 5 years so half year convention period applies
