Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Answer:
$42.60
Explanation:
Current value = Future dividends and value*Present value of discounting factor(rate%,time period)
Current value = $1.85 / (1+10%) + $45 / (1+10%)
Current value = $1.85/1.1 + 45/1.1
Current value = $
1.68181 + $40.91
Current value = $42.5918
Current value = $42.60
Answer:
<em>an option agreement.
</em>
Explanation:
The <em>option agreement</em> in the arena of financial derivatives <em>is a contract between two parties that gives one party the right, but not the obligation, to buy an asset from the other party or to sell an asset to the other</em>.
It outlines the agreed-upon price and the transaction's future date.
Answer:
PED = -1.4 or |1.4| in absolute values, price elastic
Explanation:
the price elasticity of demand (PED) using the midpoint method:
PED = % change in quantity / % change in price
- % change in quantity = {(Q
2 − Q1
) / [(Q2 + Q1)/2]} x 100 = {(200 − 300
) / [(200 + 300)/2]} x 100 = -100 / 250 = -0.4
- % change in price = {(P2 − P1
) / [(P2 + P1)/2]} x 100 = {(1 − 0.75
) / [(1 + 0.75)/2]} x 100 = 0.286
PED = -0.4 / 0.286 = -1.4 or |1.4| in absolute values
The correct answer is monopolistic competition
