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Anna35 [415]
3 years ago
11

In a market system, how are the terms of exchange established?

Business
1 answer:
NikAS [45]3 years ago
4 0

Answer:

<u>The forces underlying supply and demand interact to determine a market clearing price</u>

Explanation:      

Market is a place or system where person that are seller and buyer who come together for the purpose of sale and purchase the goods.

<em>Types of market are :</em>

<u>Perfect Competition</u> : It is a market in which there are number of sellers and number of buyers selling same commodities or homogeneous product.

<u>Monopoly </u>: It is a form of market in which there is single seller , he has full control over price.

<u>Monopolistic Competition</u> : It is a form of market in which there are number of sellers and number of buyers but all the sellers are selling different type of product.    

<u>Oligopoly</u> : it is a form of market in which there are few big firms but a large number of buyers .

The market is also known as price system.The market system is very efficient . Market system creates a good competition.                                                                                                              

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"the fed funds rate is the" __________. interest rate the fed charges commercial banks on short-term loans interest rate that th
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Amoreandrusamoreandrus
8 0
3 years ago
What are two examples of high-tech industries?
-BARSIC- [3]

Answer:

Idk if this is the right answer but I Google it and I got virtual reality/artificial intelligence and autonomous vehicles

4 0
3 years ago
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T
mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%

7 0
3 years ago
Khaling Company sold 26,850 units last year at $15.80 each. Variable cost was $11.70, and total fixed cost was $116,440. Require
MatroZZZ [7]

Answer:

1.Operating Income (loss) (2122)

2. Break even point in units = 28126

3. Required Sales in Units=30899

Explanation:

Khaling Company

Income Statement

Sales  (26,850units* $ 15.84)                       $ 425304

Less

Variable Costs ( $11.70* 26580 units)          $ 31,0986

Contribution Margin                                    114,318

Less Fixed Costs                                         $116,440

Operating Income (loss)                               (2122)

2. Break even point in units = Fixed Costs/ Contribution Margin Per unit

                    = $116,440/$ 15.84-$11.70

                        =$116,440/ 4.14

                        = 28,125.6= 28126 units

<em>We find the Contribution Margin Per unit by subtracting variable cost per unit from sales price per unit.</em>

3. Required Sales in Units = Fixed Costs + Targeted Income/ Contribution Margin Per unit

                 =$116,440 +$11,480  /$ 15.84-$11.70

                  = 127920/4.14= 30898.5= 30899 units

6 0
3 years ago
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to ________
kari74 [83]

Answer: c) economies of scale; increase

Explanation:

When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to economies of scale and increase real GDP per capita in the domestic country.

When this industry choose to break out of this limitation placed on them due to the small size of market in their country, the idea of opening trade to the world market would lead to reduction in production costs since they now have a larger market (and thus produce more). Also, the real GDP per capita in the domestic country should increase since the company in this domestic nation has expanded its production to the world market.

NOTE:

Economies of scale occur when the cost of production is now reduced because there is an increase in a company's production.

4 0
3 years ago
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