Answer:
The correct answer is the third statement which says to maximize profits, the firm should produce less than 500 units.
Explanation:
The quantity of output produced is 500 units.
The marginal cost of producing 500 units is $1.50.
The minimum average variable cost is $1.
The price of the product is $1.25.
The firm will be at equilibrium when the price is equal to marginal cost. To maximize profits firm should decrease output to the extent that marginal cost comes to $1.25. At that point, the firm will earn profits as average variable cost is lower than the price.
<span>the answer is Direct distribution
Direct distribution is a channel of distribution where the producer or manufacturer ensures his or her goods and services reaches the consumer without any intermediary like wholesalers or retailers, in this case all the middle players in the supply chain are eliminated.
By opening its own stores for selling sandwiches to consumers, Breadmakers, inc. will be doing a direct distribution (direct supply to consumers)</span>
Answer: A
Explanation:
Aggregate demand can be obtained by adding consumptions, investments, Government spendings, and net exports(exports-imports).
Aggregate demand=consumptions + investment + Government spending + exports - imports
Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year
Explanation:
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