Answer:
Maximum profit = $6
Maximum loss = -$2
Explanation:
The computation of maximum profit and loss for this position is shown below:-
Maximum profit = Strike price - Purchase of stock
= $58 - $52
= $6
Maximum loss = Strike price - Purchase of stock
= $50 - $52
= - $2
Therefore for determining the maximum profit and loss for this position we simply applied the above formulas.
When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.
<h3>What is meant by deadweight loss?</h3>
- The gap between the production and consumption of any given good or service, including taxes, is referred to as deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the ideal surplus concentration.
- Overproduction of commodities results in a loss of money. For instance, a baker might only sell 80 of the 100 loaves of bread they produce. There will be a deadweight loss since the 20 remaining loaves will become moldy and dry, and they will need to be thrown away.
- The loss in economic activity that results when the market pricing of products or services change negatively affects consumers and businesses is referred to as deadweight loss.
- You need to know the change in price and the change in quantity demanded in order to compute deadweight loss. Deadweight Loss is calculated using the following formula:. 5 * (P2 - P1) * (Q1 - Q2).
When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.
To learn more about deadweight loss, refer to:
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Answer:
cash used by investing activities 60,000
Explanation:
<u><em>Operating:</em></u>
purchase of inventory (120,000)
<u><em>Investing:</em></u>
acquisition of available-for-sale securities: (60,000)
<u><em>Financing:</em></u>
Issuance of common stock 150,000
Purchase of treasury stock (70,000)
The investing activities will be those which represent a use of cash in securities, shares and note receivables and the cash inflow generate from this investment.
Answer: 3 million.
Explanation:
Unemployment is defined as when a member of a Country's labor force is jobless but actively looking for work.
In the Scenario 28-1, the discouraged people are not counted as they are discouraged and not looking for work and 1 million other people being students and retirees amongst others are not looking for work either.
The unemployed section of Mankiwland is therefore the 3 million unemployed people.
