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laila [671]
3 years ago
5

Arbitrage is based on the idea that _________

Business
1 answer:
eimsori [14]3 years ago
6 0
Assets with identical risks must have the same expected rate of return
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Suppose your firm develops a new pharmaceutical product that may be used to reduce blood cholesterol levels, so the firm is the
Troyanec [42]

Answer:

The markup calculated as a result of information about the elasticity of demand

Explanation:

As a monopoly seller of pharmaceutical products the price set as markup would be above our marginal cost.

There are three facts about markup:

1. The Markup is not to be a price below marginal cost of the pharmaceutical product.

2. Markup is smaller when demand is more elastic. Remember if the price elasticity of demand is lower than 1, (negative) a rise in price causes an

increase in revenue for the seller.

Therefore having a -4 elasticity of demand could imply more profits for the firm.

5 0
3 years ago
Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $2
laiz [17]

Answer:

$117500

Explanation:

Taxable loss = $140000 for 2018

Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017

tax rate = 30%

Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )

first calculate taxes on taxable incomes for 2016 and 2017

$35000 * 30% = $10500

$40000 * 30% = $12000

hence taxable profit = 10500 + 12000 = $22500

Net loss to be reported on 2018 income statement

= $140000 - $22500 = $117500

8 0
3 years ago
Gables purchased used Mercedes from a German company. The cars were built for the German market and met its safety and pollution
Mazyrski [523]

Answer: (E) none of the other choices

Explanation:

None of the options are correct in the above question.

The USA extends Most Favoured Nation Status to most countries in the world including Germany so that would not be a reason for the car's not to pass through customs.

The cars could indeed be a threat to national security. Just because they come from a safe country does not mean that they were not tampered with. They need to be properly inspected.

They are indeed a source of competition for US automakers but that would be no reason to stop them. Perhaps tariffs could be applied on them but they will not be stopped.

There is no provision in US Customs practices that prohibits the importation of used cars solely because they are used cars therefore it will not be a reason to halt the car's going through customs.

None of the options are therefore correct.

5 0
3 years ago
How have computers affected the american workforce?
Lynna [10]
Virtually all companies in America now make use of computers in their daily activities. American workforce now need computer technical skills before they can gain employment to work in companies.
5 0
3 years ago
Read 2 more answers
Seamark buys $300,000 of Eider's 8% five-year bonds payable at par value. Interest payments are made semiannually. All of the fo
mario62 [17]

Answer:

D.the semiannual interest payment amount is $24000

Explanation:

Debt securities are recorded on the purchase price of the securities which includes purchase price and any brokerage costs etc. Cost recorded and maturity value of this security will be $300,000 because these are issued on par and will mature on par value.The semiannual interest payment will be $12,000 ( $300,000 x ( 8% /2)) rather than $24,000. Interest revenue will also be credited to the interest revenue account. So the only incorrect option is D.the semiannual interest payment amount is $24000.

8 0
3 years ago
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