Different sellers of wheat like MacDonald's farm and Mickey's Farm where they do not have an influence on the price marks the existence of pure competition in the economy.
<h3>What is pure competition?</h3>
Pure competition refers to a market where there is free entry and exit of buyers and sellers in the market selling exactly the same product with, no buyer or seller can influence the price.
Hence, if there is a pure competition in the wheat market, none from the aforementioned sellers would be able to sell enough so that they can influence the price.
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Answer:
Support trading patterns within the group of developed nations
Explanation:
The major aim of the OECD is to improve the economy of the world and promote trade between developed nations. It provides a forum for different government to come together and work for the purpose of finding solutions to problems they have in common. They work with nations that aims to improve their economy and the well-being of its people.
Answer:
1) The pretax income of Acme Brush became a US dollar pretax loss because of spot rates and or the exchange rates meaning sales were made when the exchange rate was Less than the exchange rate when the expenses were paid. But the main difference between the two currencies is exchange rates.
2) Cooper Grant should be paid the annual bonus as it is payable to him because Acme Brush of Brazil made a profit and his Bonus is a predetermined percentage of the pretax income.
Explanation:
Answer:
10% of the investment = $1,000
Explanation:
The bond guarantees a 10% rate of return and you have $10,000 to invest.
The other investment offers similar risk, so you should demand at least the same rate of return = 10% or $1,000
Investors are risk averse, and the higher the risk, the larger the return expected form an investment. If you have two investments with the same level of risk, you should be able to demand the same return from both investments. If the risk of one investment is higher, then you should demand a higher return from than investment. On the other hand if the investment has a lower risk, you should demand a lower rate of return.
Answer:
The correct answer is letter "A": The difference between the expected YTM and the YTM of the comparable risk-free bond
.
Explanation:
Risk Premium is a return that exceeds the risk-free rate of return that the investment is expected to yield. The risk premium for an asset takes the form of compensation for investors who tolerate the additional risk of an investment compared to the risk-free asset. In fact, investors expect to receive risk premiums because of the risk they are engaged in with certain investment instruments.