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3 years ago

Demand elasticity analyzes the _______________ and the change in total revenue resulting from a change in price.

1 answer:

5 0

<span>Demand elasticity analyzes the degree of sensitivity and the change in total revenue resulting from a change in price.
Demand is a service (in economics), that people are willing to buy at a certain price and degree of sensitivity is combination of the affect which is caused by changes in input values or output.</span>

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1) What is international currency arbitrage all about? Consider the following data: UK 90-day interest rate = .07 Europe 90 day

balandron [24]

Answer:

- International currency arbitrage is about simultaneous buy and sales of currency in the market to make risk-free profit from the differential in exchange rate and difference between market interest rate each currency brings about.

- In the question, from the French point of view, there are not opportunities for arbitrage.

To illustrate, for example, we have €10,000,000 for investment:

First, exchange €10,000,000 for £8,333,333.33 at spot ( 10 million /1.2)

Enter into Forward contract to fixed exchange rate after 90 days at £1.00 = €1.1765

Invest £8,333,333.33 at 90-day, 7% per annum to receive £8,479,166.66 at maturity ( Principal + interest = 8,333,333.33 x [1 + (7.0% x 90/360)] )

Convert £8,479,166.66 to €9,921,816.66 ( 8,433,333.33 x 1.1765).

While if we keep the amount in € and invest, we will get €10,120,000

=> Return on € of the investment is €9,921,816.66/€10,120,000 -1 = 1.96%

In other words, the higher return on £ denominated asset over the € is not large enough to cover the depreciation of £ in comparison to €.

- As investment in € denominated asset yields higher returns, investor will exchange have higher demand of £ in forward transaction which will increase the value of £ in forward transaction. Besides, higher demand for € denominated asset will cause the price to increase, that is, interest rate decrease. Gradually, the arbitrage transactions will exploit the arbitrage opportunity.

Explanation:

4 0

4 years ago

In a decision to either sell as is or process a product further, __________costs are considered irrelevant and _____________cost

MrRa [10]

In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.

The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.

Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.

Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.

Learn more about joint cost here brainly.com/question/14988439

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6 0

2 years ago

In inflation-adjusted dollars, how have average wages in the United States changed in the last 20 years? Wages have varied every

natulia [17]

The appropriate response is wages have gone down. The inflation-adjusted return is the measure of restore that considers the day and age's expansion rate. Inflation-adjusted profit uncovers the arrival for a speculation subsequent to expelling the impacts of swelling. Expelling the impacts of expansion from the arrival of a speculation enables the financial specialist to see the genuine procuring capability of the security without outer monetary powers.

5 0

3 years ago

Which of the following is not a method for getting involved in global business?

WARRIOR [948]

<span>D. all are methods pretty sure at least</span>

5 0

3 years ago

William wants to obtain information from the Securities and Exchange Commission regarding the number of active cases related to

Tomtit [17]

Answer:

The correct answer is a Freedom of Information Act request.

Explanation:

The Freedom of Information Act (FOIA) is a statute that establishes the process by which every individual can request access to records or information from federal agencies. Federal agencies, such as the Commission for Equal Employment Opportunities, are required to disclose their records once they have received a written request for review, except if the requested documents are protected by one of the nine exceptions. and three exclusions contained in the FOIA Law. The FOIA Act does not apply to records held by Congress, courts or state and local governments. Any request to review records held by state and local governments should be directed directly to the appropriate state or local government agencies.

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3 years ago