TOPIC FIVE (TEST - Vocabulary)

A farmer and a meatpacker use the commodity markets to reduce their risk. One agrees to buy live cattle in the future at a fixed

VLD [36.1K]

Answer:

A farmer is the one that owns the cattle and is ready to sell it on the market demand, while the meatpacker is the one who buys the product and sells it in different parts to the end consumers.

Since they both are using the commodity market to reduce the risk, the farmer will be the one who agrees to sell the cattle in the future at a fixed rate, while the meatpacker will be the one who agrees to buy the cattle in the future at a specified price fixed by him.

Hope this helps. ThankYou.

3 0

2 years ago

Three sisters are interested in forming a business together. They have three initial concerns: How to maximize their benefits fr

blsea [12.9K]

Answer:

Limited liability company

Explanation:

A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.

It combines features of a corporation and a partnership or sole proprietorship.

This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.

Also the business will continue even if only one of the sisters remains.

So an LLC is the best option for them.

3 0

2 years ago

When the marginal revenue curve intersects the horizontal axis A. demand is relatively inelastic. B. demand is perfectly elastic

konstantin123 [22]

Answer:

D. demand is unitary elastic.

Explanation:

A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.

The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.

8 0

3 years ago

Clear Waters Snorkeling Equipment Company has had major losses for the last few years. U.S. Representative Snow has introduced a

Maslowich

Answer:

C. II only

Explanation:

8 0

3 years ago

1. If money is deposited in a bank that pay's simple interest of 4.5 %, bow much will have to be deposited to earn $90 of intere

TiliK225 [7]

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.

Explanation:

The given is,

Simple interest of 4.5 %

Earn $90 of interest for 8 months

Step:1

Formula to calculate the simple interest method,

$F=P(1+iN)$ ...................................(1)

Where,

F - Future amount

P - Initial investment

i - Rate of interest

N - Number of years

From given,

i - 4.5%

Let, X - Initial investment, P = X

F = P + Interest amount

F = X + 90

From the equation (1),

$(X+90)=X(1+(0.045)(0.667))$

(∵ N = 8 months = $\frac{8}{12}$ = 0.667 year )

$(X+90)=X(1+(0.03))$

$(X+90)=X(10.03)$

$(X+90)=1.03 X$

$90=1.03X-X$

$90=0.03X$

$= \frac{90}{0.03}$

= 3000

P = X = $ 3000

From the X value.

F = P + 90

= 3000 + 90

F = $ 3090

Result:

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.

4 0

2 years ago