Answer and Explanation:
Please find answer and explanation attached
Answer:
the liquidity preference theory
Explanation:
The theory of liquidity preference relates to the concept that indicates that an investor will accept a lower rate of interest or yield on assets with lengthy-term maturities that come with higher volatility as stakeholders favor cash or other highly liquid resources, all other considerations being equivalent.
As per the liquidity choice principle, brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium- or longer-term securities. In simple words, As per the liquidity choice principle, the brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium- or larger-term securities.
Answer:
More; increasing supply and earning profit; entering the market; reducing the profit to zero; horizontal.
Explanation:
The claim by WebMD that the protein in tuna would lead to 2 Years increase in life expectancy would cause the demand to increase at every price. The demand curve will consequently shift to right.
As a result the firms in short run will supply more and enjoy profits.
Since the firms were facing long run equilibrium and were enjoying zero profit, an increase in price will cause profit to firms.
Since in the short run firms can not enter or exit they will continue producing.
In the long run attracted by the profit earned by existing firms, the new firms will enter the market till all the firms are having zero profits.
In the tuna industry the new firms will start production, so the industry supply will increase causing a rightward shift in the supply curve.
In the long run the shape of the supply curve of the industry will be horizontal.
Answer: 0
Explanation:
From the question, we are informed that a customer has an existing short margin account and wants to write five covered puts against 500 shares of stock that are short in the account.
Based on the above scenario, the margin requirement to write the puts will be zero. This is due to the fact that there is no risk that is attached to the short calls.
Answer:
Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?
A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
Explanation:
Level capacity strategy
The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall
