Answer:
B. an interest rate paid on Eurodollar loans in the London market.
Explanation:
London InterBank Offered Rate (LIBOR)
This is simillar to the federal funds rate.
It is a rate at which banks offer fonds to other banks, thus "interbank", for short-term loans.
It is generallyaccepted to evaluate and compare interest rate and indicate the borrowing cost between banks.
<u> It is based on five currencies:</u>
- the US dollar
- the euro
- the British pound
- the Japanese yen
- and the Swiss franc
<u>Also, there are LIBOR for different maturities:</u>
- overnight,
- one week,
- one month,
- two months,
- three months,
- six months
- and a year.
Answer:
$13,820
Explanation:
The computation of the amount of gross margin is shown below:
As we know that
Gross profit = Sales revenue - cost of goods sold
where,
Sales revenue = $30,000
And, the cost of goods sold
= Purchase value - purchase discount + freight charges
= $16,000 - $16,000 × 2% + $500
= $16,000 - $320 + $500
= $16,180
So, the amount of the gross margin is
= $30,000 - $16,180
= $13,820
Answer:
The options for this question are the following:
a. marginal cost equals average revenue.
b. marginal revenue equals average cost.
c. average total cost equals average revenue.
d. marginal revenue equals marginal cost.
The correct answer is d. marginal revenue equals marginal cost.
Explanation:
The pure monopoly arises when there is a total absence of competition, due to independent entry barriers to the company's competitive capacity.
A single company offers a product that has homogeneous characteristics, which has no substitutes and for that reason has a large number of buyers. There are also economic, technological or legal barriers that prevent the entry of potential competitors. That is, there are barriers to entry.
In general, a monopoly situation occurs in the market when a single company controls the level of production and price of a product in the market. We could say that this single company has the ability to determine the price to be charged for that product and will have the power to decide the amount of production it will offer to the market.
Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
Answer:
A. $60
Explanation:
Recall that, consumer's surplus refers to the price that a consumer is willing to pay less the amount he or she actually pays.
Thus
Consumer surplus = maximum price willing to pay - actual market price.
Given that
Market price = $40
Vonda is willing to pay = $90
Aleiyah is willing to pay = $50
Hence.
Vonda consumer surplus = 90 - 40
= $50
Aleiyah consumer surplus = 50 - 40
= $10.
Total consumer surplus = 50 + 10
= $60.
