The simple rate of return on the investment is closest to
15.2%
Answer:
The correct answer is letter "B": precautionary motive.
Explanation:
A precautionary motive is a preventive act of carrying or saving extra money to successfully face an unexpected event. This may lead to people accruing funds in a bank savings account or purchasing securities or assets profitable enough to cover financial hardship.
This is known as a Cartel
''A formal agreement between many companies to limit production and artificially increase the demand and price of their products to make more profits''
Cartels are illegal in almost every country, but that has not stopped many large companies from taking part in such activities.
They exist because it is extremely difficult to legally prove that a group of companies is acting as a Cartel.
Cartels can have a devastating long-term impact on the local and national economy.
Answer:
Option (c) is correct.
Explanation:
Stephen can move 70 boxes or bake 28 cookies in an hour:
Opportunity cost of producing a box = (28 ÷ 70)
= 0.4 cookies
Opportunity cost of producing a cookie = (70 ÷ 28)
= 2.5 boxes
LeBron could move 16 boxes or bake 4 cookies in an hour:
Opportunity cost of moving a box = (4 ÷ 16)
= 0.25 cookies
Opportunity cost of making a cookie = (16 ÷ 4)
= 4 boxes
Therefore,
Stephen has a comparative advantage in making cookies because the opportunity cost of making cookies is lower than the LeBron.
LeBron has a comparative advantage in moving boxes because the opportunity cost of moving boxes is lower than the Stephen.
Yes, the trade is possible.
Stephen should make cookies and LeBron should move boxes.
