Answer:
True
Explanation:
STRIPS are zero coupon bonds, and the advantage of them is that they allow an investor to know exactly how much money they will receive at a future date.
The investor purchases the STRIPS at a discount value, which we are not told here. E.g. assuming that the discount rate is 5% (similar to (4), the price of the STRIPS = $50,000 / (1 + 5%)⁶ = $37,311.
I’m not sure if I understand this,
But I’ll try to figure this one out
Just give me some time
Answer:
C. subtracting the competitive level producer surplus from the producer surplus associated with less output
Explanation:
A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.
Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.
The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output
Answer:
TRUE
Explanation:
We currently live in a globalized world. Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper, becoming consequently more competitive. Thus, US multinational companies outsource the manufacture of components of their products in different territories. For example, an Iphone has components made in China, Vietnam and others. This makes the final price of the iphone lower around the world.
Answer:
profit increase by 750 dollars
Explanation:
We must base our analisys considering only the loan board associated cost:
<em><u>contribution per long board:</u></em>
300 sales price - 225 variable cost = $75
total contribution for 250 units:
250x$75 = 18,750
<em><u>increase in fixed cost:</u></em>
69,000 - 51,000 = 18,000
incremental operating profit:
18,750 contribution - 18,000 fixed cost = 750
