Answer:
C. Many decisions are made on the margin
Explanation:
Opportunity cost refers to the benefits foregone of a non chosen alternative when another alternative is chosen.
In the given case, time is a scarce resource and limited. Rajiv has to practice for triathlon which comprises of 3 events. To win the triathlon, he needs to perform well collectively.
If he undertakes to swim more, the time available for other 2 activities need to be sacrificed i.e running and biking. Rajiv has planned to sacrifice biking marginally in the favor of swimming. The lesser an activity is sacrificed, the lower would be it's opportunity cost.
Whereas his wife's approach in short can be called "all or nothing" approach which relates to completely withdrawing from other activities and accepting one activity fully.
Rajiv is trying to make little changes instead of fully giving up on one activity and totally taking up another. This involves lesser cost in the form of opportunity cost, at the same time help him prepare for all three activities efficiently.
Answer:
B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.
Explanation:
Given
Trading price = $20
Exercise price of call option = $20
Call option price = $1.50
Price increment = 10% to $22
It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.
An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.
Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.
Moving to the percentage increase;
This will be larger than 10%.
This is because when stock price increases by 10%, the value of the option will increase by more than 10%.
Answer:
The correct answer is: increase; decrease.
Explanation:
The world price of cotton rises substantially. An increase in price will cause the supply to increase as price level and supply are directly related. In order to increase the supply of cotton, the firms will need more labor. This will cause the demand for labor to increase in the cotton-producing firms.
As the price of cotton, the cost of inputs for textile firms will increase. This will increase the cost of production for the textile-producing firms. This increase in cost will cause the supply to decrease. This will cause the demand for labor to decline as well.
There are different types of bank account. A relationship bank account refers to a theoretical accounting of relationships in which positive deposits and negative withdrawals can be made during every interaction you have with that person.
- The Relationship Bank Account (RBA) is similar to a checking account at a bank. In this account, one can deposits and improve the relationship, or they may make withdrawals and weaken it. Relationship often exist here.
If a person open an RBA with another individual, one cannot close it. Bank relationship balance is simply known to be the total assets that a Customer holds with the Bank, even if it is only one person or jointly owned by the Customer.
Learn more about relationship bank account from
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Answer: A medium of exchange.
Explanation: A medium of exchange can be in the form of currency, which allows one person to trade/exchange it for another item. Currency is used to purchased an item that another person is selling and they give each other the different items during their exchange.