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ss7ja [257]
3 years ago
5

What most likely will happen if the pie maker continues to make additional pies? the marginal costs will continue to rise, incre

asing the total cost, while the marginal revenue remains the same, decreasing the profit. the marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit. the marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit. the marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit.?
Business
2 answers:
ZanzabumX [31]3 years ago
7 0
A. The Marginal cost will continue to rise, increasing the total cost, while marginal revenue remains the same, decreasing the profit
Over [174]3 years ago
4 0
<span>The most probable thing that will happen if the pie maker keeps making additional pies is this: the marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit. This is to assume that no buyer is interested in purchasing the pies at a certain period of time. </span>
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In 2008, 1 in approximately every 200 cars in the United States was stolen. Beth owns a car worth $20,000 and is considering pur
rjkz [21]

Answer:

A) The amount of the premium in fair insurance policy that replaces Beths car, must be equal to the probability or expectation of claim of car theft.

Therefore, the Premium amount = 20000 x (1/200)

= 20000 (0.005)

= $100

B) If an Insurance company charges 0.6% for replacing a stolen car, then the policy will cost beth:

20000* 0.6%

= 12,000/100

= $ 120  

C) To be risk-neutral means to be indifferent to the risk. This means that Beth would be indifferent. She most likely will be focused on maximizing value for money. In other words, she will NOT pay for the insurance policy in part b because part A provides her with the exact (or fair) premium for her insurance.

D) The moral hazard problem is this, people tend to become more careless with an insurance policy in place. This moral hazard arises form the knowledge that there is an insurance policy that caters to their risks.

As a matter of practice, therefore, insurance companies factor this increased risk into their premiums. Where the premium was supposed to be $100, they may charge $120.

In summary, it means that Beth most likely will move from becoming risk neutral to becoming (to a certain degree) more risk loving.

Cheers!

3 0
3 years ago
Monopoly output is _____ the corresponding output for perfectly competitive industries. Please choose the correct answer from th
photoshop1234 [79]

Monopoly output is _the same as (B) ______ the corresponding output for perfectly competitive industries

<h3>Similarity between a monopolistic market and perfectly competitive market </h3>

A monopolistic market is similar to a perfectly competitive market because both markets determine the prices and supply of goods and services in the market. although a perfectly competitive market consists of several firms no particular firm controls the market which makes the group of firms as act as a monopoly.

Hence the output of a monopoly is similar to the output of a perfectly competitive industries.

Learn more about Monopolistic markets :  brainly.com/question/24877850

#SPJ1

4 0
2 years ago
Before you role out or disbute a presentation
Bingel [31]
What's the question?
7 0
3 years ago
On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature
Kazeer [188]

Answer:

Bond Price = $97.4457408 million rounded off to $97.45 million

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 113 million * 0.05 = 5.65 million

Total periods (n) = 30

r or YTM = 0.06 or 6%

The formula to calculate the price of the bonds today is attached.

Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06]  +  113 / (1+0.06)^30

Bond Price = $97.4457408 million rounded off to $97.45 million

4 0
3 years ago
In an economy where heating oil is the primary source of heat for most households, new supplies of natural gas, a substitute for
Otrada [13]

Answer:

Price Decreases & Quantity Decreases

Explanation:

As a result of the discovery of an alternative which is cheaper, consumers increase demand for natural gas. The demand for heating oil would fall. This would lead to a fall in price and quantity.

I hope my answer helps you

8 0
3 years ago
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