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3 years ago

Which are examples of free enterprise?

Business

1 answer:

iVinArrow [24]3 years ago

7 0

Answer:

It's because limited powers of government ensures that there is no misuse of power for profit making business because it will not help them achieve economic goals and community property distributes the equal shares among workers and economic freedom provides the company to have freedom to expand its community business so that profit making businesses can stop

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Which of the following is likely to occur as the result of the law of diminishing marginal utility? A. Petra's utility from he

Rus_ich [418]

Answer:

The correct answer is option C.

Explanation:

The law of diminishing marginal utility means that keeping other things at constant the marginal utility derived from the consumption of a commodity goes on declining with each additional unit of the commodity.

So, the marginal utility from the first unit will be highest, that from second unit will be lesser, that from third even lower and so on.

In the examples given above, Wesly's case is most applicable to this.

So, option C is the correct answer.

4 0

3 years ago

A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan

lara31 [8.8K]

Answer:

1003

Explanation:

Given:

Period= 30 years, Loan amount= $200,000,

Payments- Monthly,

Teaser rate for first 2 years = 4%,

Annual payment cap=5%, Composite rate on reset date= 6%

Annual rate for 2 years =4%

Monthly rate will be 4/12 = 0.3333% = 0.003333

n=30years=360 months

Monthly payment for first 2 years = $Pr(1+r)^n/((1+r)^n-1)$

= $200000\times0.0033\times1.033^{360}/(1.033^{360}-1)$

= 954.83

or by Excel function = PMT(0.003333,360,200000,0) = 954.83

Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or

Balance= $A(1+r)^n-PMT\times(1+r)^n-1)/i$

= $200000(1.0033)^{24}-954.83(1+0.003333)^{24}-1)/0.003333$

= 192,812.36

Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003

6 0

3 years ago

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is

SIZIF [17.4K]

The answer is a valid contract. A valid contract occurs when both parties has expressed or had shown agreement when engaging to certain services or products as means of showing that they both have negotiate and came to an understanding of agreement with what they are pertaining to in which is shown above as the adults involved has an agreement of paying the bicycle that shows a valid contract.

5 0

3 years ago

Assume the world market for oil is competitive and that the marginal cost of producing (extracting and bringing to market) ano

xz_007 [3.2K]

Answer:

The economic surplus will decrease by $2.20

Explanation:

$81.40 and $79.20 are <em>marginal </em>cost and benefit, which are the changes to total costs and total benefits due to producing and consuming one additional barrel of oil.

They can be used to calculate <em>change </em>to economic surplus, which is the change to the net economic value received by society, which is given by:

marginal benefit - marginal cost = $79.20 - $81.40 = - $2.20

7 0

3 years ago

The U.S. corporation Fun Toys, Inc. sets up a firm in China. The parent company remains in the United States and retains complet

rosijanka [135]

Answer:

(A) A wholly owned Subsidiary

Explanation:

A wholly owned subsidiary is a company that is completely owned by another company called the Parent/Holding Company. The parent company will hold all (100%) of the subsidiary's common stock.

A wholly owned subsidiary allows the parent company to diversify, manage, and possibly reduce its risk.

Some of the disadvantages of a wholly owned subsidiary include the possibility of multiple taxation, lack of business focus, and conflicting interest between subsidiaries and the parent company if not properly managed.

7 0

3 years ago