Answer: D. Moral relativism
Explanation: The theory of moral relativism helps resolves issues bordering on truth and falsehood. It states that the truth or falsity of moral judgments, or their justification, is not absolute or universal, but is relative to the traditions, convictions, or practices of a group of persons concerned. With respect to justification, it says that judgment may be justified in one society but not in another. Here, no standpoint is uniquely privileged over all others, Pratt's, the investors or parents as the case may be.
Answer:
The answer is: $6,900
Explanation:
To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:
- total loss $200,000 x 0.002 = $400
- 50% loss $100,000 x 0.01 = $1,000
- 25% loss $50,000 x 0.1 = $5,000
Total $6,400
If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.
Answer:
Investors’ outlook for the firm has improved.
Explanation:
Computation of Market price.
MPS = PE ratio × EPS
⇒ MPS (Previous) = $1.20 × 15
⇒ MPS (Previous) = $18
⇒ MPS (Current) = $1.20 × 18
⇒ MPS (Current) = $21.60
So, we say that the market price has increased.
Investors’ outlook for the firm has improved.
Answer:
neither firm cheats on the agreement; Gary cheats on the agreement and Frank does not cheat
Explanation:
Gary's Gas and Frank's Fuel operate an oligopoly.
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by:
- price setting firms
- product differentiation
- profit maximisation
- high barriers to entry or exit of firms
- downward sloping demand curve
A cartel is when two or more producers of a certain good or service come together to regulate either the price of their good or the quantity of their goods that would be supplied. The producers that come together are usually competitors.
A tight oligopoly is when at most 8 firms hold at least 50% of the market share. there is usually cooperation among the firms
If both firms collude to increase prices, there would be an increase in total profits.
Gary's profits are highest when he cheats on the collusion and sells at a lower price. He would sell more due to his lower prices than Frank.
Answer:
B) Jerry, a football player who earns $2 million a year
Explanation:
In an accident owing to the negligence of a party, what requires notice is which body part gets injured and how it affects an individual's earning capacity.
In the given case, George is a retired professor who gets assured pension of $50,000 a year. Harry being a chartered accountant earns $200,000 an year. Injury to the leg will affect them less comparatively to Jerry, being a football player.
Injury to his leg would make him lose out on $2 million of income being the highest among the three. Secondly, his profession requires the use of that body part which has been actually injured i.e the leg.
Thus, out of the three, the footballer is entitled to recover the maximum damages as per the facts.