Ask question

Ask question

All categories

2 years ago

11

What are the three conditions for a market to be perfectly competitive? For a market to be perfectly competitive, there must b

e

1 answer:

xz_007 [3.2K]2 years ago

5 0

Answer:

There are 4 conditions that make a market to be perfectly competitive:

There must be a large number of buyers and sellers, and each one must be relatively small.
All the sellers produce identical products or services.
There are no barriers for entry or exit.
All the buyers and sellers are price takers, no one can set the price at their own will.

You might be interested in

the stock price jumps twice in a given year. if it jump up, it goes up by 10%, if it goes down, it goes down by 20%. the stock i

cestrela7 [59]

The value of European Put option is 9.

<h3>What is Put option?</h3>

Under derivative securities market an option whose value depend on the underlying item where delivery is not made generally & net settlement done by squaring off the position and depends on the volatility of market.

Put Option is a bearish school of thought where investor thinks the market will decline & the value will be below the exercise price.

In hedging the position of investor make certain not better, therefore the value of put option lies between zero or difference value among the spot price & exercise price with discounting annual market interest rate:

Spot = 70

Exercise = 65

Future Price = 70 × 80% = 56

Rate = 4 % Compounded semi annually.

Value of Put = Spot Price - Exercise Price

= 56 - 65

= 9

Thus the value of put option will be 9 (65-56).

To know more about Put option refer:

brainly.com/question/24016129

#SPJ1

6 0

7 months ago

A government bond with a coupon rate of 5% makes semiannual coupon payments on January 7 and July 7 of each year. The Wall Stree

Morgarella [4.7K]

Answer:

The value of the bond is 1,003.8771 after subtracting the accrued interest to the market value of the bond.

Explanation:

From the amount provide by the Wall Street Journal there are two component, the bonds value and the interest accrued over time.

we should calcualte the interst and subtract to get the bond value:

principal x rate x time = interest

rate and time should match, so the 5% rate should be convert into a 2.5% rate and we express time as portion of 182 days:

1,000 x 0.025 x (22-7)/182 = 2,060439 = 2.060439 interest

1,005.9375 - 2.0604 = <em>1,003.8771</em>

5 0

3 years ago

The ______ requires that if a new employee had group health insurance at a previous employer and the new employer has healthcare

IRINA_888 [86]

Answer:

The correct answer is C. Consolidated Omnibus Budget Reconciliation Act.

Explanation:

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This law guarantees employees the right to make payments for group medical insurance in order to maintain the insurance they would otherwise lose after:

- The reduction of your work hours.

- Leave the job.

- Job loss

Most people can keep insurance for up to 18 months. Some people may be able to keep it for a few months longer than that.

4 0

2 years ago

During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310

mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0

3 years ago

The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per

Xelga [282]

Answer:

Inelastic

Explanation:

Price Elasticity of demand is the a measure which is used to show the responsiveness of the quantity to its price.

Price Elasticity of demand = Change in quantity / Change in price

% Change in quantity = ( 45,000 - 35,000 ) / 45,000 = 22.22%

% Change in price = ( 20 - 30 ) / 20 = -50%

Price Elasticity of demand = Change in quantity / Change in price

Price Elasticity of demand = 22.22% / -50% = -0.4444

As the answer is less than 1 so, demand is Inelastic.

8 0

2 years ago