Answer:
B. minus$2,000.
Explanation:
The computation of the economic profit is shown below:
As we know that
Economic profit = Total revenue - Explicit costs - Implicit costs
= $35,000 - $30,000 - $7,000
= -$2,000
The implicit cost is come from
= $70,000 ×10%
= $7,000
We simply applied the above formula so that the economic profit could come
This question is incomplete, the complete question is;
We will derive a two-state put option value in this problem.
Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5
Explanation:
Given that;
S₀ = 106, X = 112, 1 + r = 1.12
Us₀ = 149 ⇒ Pu = 0
ds₀ = 75 ⇒ Pd = 37
To find the Hedge ratio using the expression
H = Pu - Pd /Us₀ - ds₀
so we substitute
H = 0 - 37 / 149 - 75
H = - 37/ 74
H = - 1/2 ≈ - 0.5
Answer:
Henry is analyzing - "Would it be ethical not to take action?"
Explanation:
Ethics is a moral principle that involves a concept to become right or wrong. Business ethics and work ethics are beyond what ordinary ethics describes. Business ethics works with appropriate business policies and practices which encourage potential controversy. In this question, Henry worries about the manufacturing process, which emits enormous carbon-dioxide. He wants to upgrade the machine to reduce the emission as well as become echo-friendly. Therefore, he is in between an ethical decision whether to take action or not to take action. So, he is analyzing, "Whether it be ethical not to take action?"
Answer:
b. All rocks in the Earth's crust will, at some point, be subducted and melted to create igneous rock.
Explanation:
There are 3 types of rock:
1. Igneous, wich are formed when 2 tectonic plates collide and magma goes to surface getting cold
2. Sedimentary: when many layers of preexistent rocks produce pressure and heat by weigth melting the rocks.
3. Metamorphic: a new rock is formed by chemical and/or physical reaction over preexistent rocks
Sedimentary and metamorphic would be subducted in order to produce new igneus rocks.
