Answer:
A. demand for labor; minimum wage
Explanation:
When an effective minimum wage is introduced, the number of hours of labor employed is determined by the <u>DEMAND FOR LABOR</u> and the <u>MINIMUM WAGE</u>
Answer:
The present value decreases
Explanation:
The present value of an amount of $100 to be received in one year, at an interest rate 'r', is:
As we can see, since the interest rate is in the denominator of the expression, if 'r' increases, then the present value decreases.
I.e. If the interest rate were zero, then $100 would buy the same amount of goods today as it would in one year, however, if the interest rate is positive, $100 today would buy more goods than it would in one year.
In a perfectly competitive market in long-run equilibrium, an increase in demand creates economic profit in the short run and <u>induces entry</u> in the long run.
<u>Explanation:</u>
In optimal competition, equilibrium is the position where consumer demands are equal to market supply. In the short term demand will impact equilibrium. In the long run both a product's demand and supply would affect the balance in perfect competition.
In the long run, companies participating in a perfectly competitive market gain zero income. The long-run equilibrium position for a perfectly competitive market emerges in which the demand curve (price) collides the marginal cost curve (MC) and the Average Cost (AC) curve minimum point.
Answer:
If you had purchased 10 shares of GoPro at the IPO (Initial Public Offering) on June 26, 2014 at 31.34, you would have spent <u>$313.40</u>.
If you were more of a “gambler” than an “investor”, and you saw the market shoot up for GoPro and hit 86.97 just 3 months later and decided to SELL, you would have recognized a capital gain of <u>$869.70 - $313.40 = $556.30</u>.
This would have resulted in a YIELD of <u>($556.30 / $313.40) x 100 = 177.5%</u>.
Let’s say you hung on to your 10 shares of GoPro, believing that it would get even better. Today it is listed at 4.42. If you were to sell, you would recognize a loss of <u>$44.20 - $313.40 = -$269.20</u>.
This would result in a YIELD of <u>(-$269.20 / $313.40) x 100 = -85.9%</u>.
The average annual yield for 5.5 years would then be <u>-12%</u>.
Look up GoPro today. GoPro currently trading at <u>$8.63 (January 7, 2021)</u>.
Explanation:
1 + 0.859 = (1 + r)⁵°⁵
⁵°⁵√1.859 = ⁵°⁵√(1 + r)⁵°⁵
1.12 = 1 + r
r = -0.12 (since the yield was negative, r must be negative)