Answer: C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.
Explanation:
Mr. Fringe says that the more expensive a consultant is, the more they can be blamed. This means that the kor expensive a consultant is, the more they will be sought after in order for the company to blame them.
When a successful firm of consultant reduced their prices and became cheaper, less people wanted to hire them. This therefore supports the logic of Mr. Fringe as a lower cost led to the consultants being less sought after.
The correct answer to this open question is the following.
Japan is dealing with economic concerns about an aging population in the following way. The Japanese government is inviting the seniors in Japan to not retire, instead, encouraging them to continue to work and be productive. Statistics show that 20 to 22% of Japan's population is seniors, older than 65 years. So that is why the Japanese government invites people to keep on being productive, generation some income for them, and extending the moment in which the government has to pay pensions.
Answer:
b. 10% doubling
Explanation:
Options are <em>"a. tripling, b. 10% doubling, c. 90% tripling, d. 90% doubling, e. 10%"</em>
In this question, 90%(0.9) learning rate means that (1-0.9)10% unit of input is reduced each time the production is doubled. In a nutshell, the learning curve percentage represents the proportion by which the amount of an input per unit of output is reduced each time production is doubled.
Answer:
Arbitrage opportunity may exists as the ZCBs selling at different price at same time due to change in their YTM .
The PV of 100 face value zcb with different ytm are different , in this case.
for one year maturity with face value 100 current price = fv/ pv at 8% = 92.59
for Two year maturity with face value 100 current price = fv / Pv at 9% for two years = 84.167 , if the bond holder sell the bond after 1 year only, the price = 91.74 .
a) The arbitrage opportunity exist with buy two bond with face value 100 with maturity of 1 year and face value 110 with maturity of 2 years.
b) profit 0.01 , as difference between PV of both bond at their YTM rate.
