Answer:
The correct answer is (B)
Explanation:
Market equilibrium is a situation where demand equals the supply, which helps to determine the equilibrium quantity and price. Market equilibrium is a point which continuously shifts due to change in quantity demanded and supply. Overall at the equilibrium point, everyone is better off, and there will be no remaining opportunities for the individuals to make themselves better off.
Answer:
(a) gain $1,000.
(b) lose $2,000.
Explanation:
If the investor's contract states that he should sell British pounds for US dollars at an exchange rate of 1.5000 US dollars per pound, he will gain money if the exchange rate falls below that value and lose if it rises above it.
(a) 1.4900
The investor would gain $1,000.
(b) 1.5200
The investor would lose $2,000.
Answer:
<em>The current market price for the bond is $903.05</em>
Explanation:
<em>Steps taken to arrive at the current market price of the bond</em>
<em>Recall PV=present value</em>
<em>face value=$1000</em>
<em>percent bond=4.5,</em>
<em>A semiannual interest payments of 7 years, yielding a maturity rate of=6.23%</em>
<em>PV = [(.045 × $1,000)/ 2] ×{(1 - {1 / [1 + (.0623/ 2)]14}) / (.0623 / 2)} + $1,000 / [1 + .0623 / 2)]14
</em>
<em>PV = $903.05</em>
Answer:
The correct answer is a. opportunity costs
Explanation:
The cost of opportunity is the best alternative that you sacrifice when you choose an option.
It represent the benefits that you misses out on when choosing one alternative over another.
In this case the best alternative you misses out, was buy a bank certificate of deposit, and at the end of the year would have had $1030.
Answer:
860
Explanation:
The HHI is calculated by squaring the market share of each firm in the industry.
8(10²) + 2(5²) + 10(1²) = 800 + 50 + 10 860
