Answer:
Meatball prices will exceed marginal cost.
Explanation:
Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.
The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.
Answer:
The yield to call is 5.07%
Explanation:
The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)
nper is the number of years to call which is 6 years
pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5
The pv is the current price at which the bond is offered to investors. i.e $1,135.25
fv is the price at the bond would be called in six years i.e par value+premium
par value is $1000
premium is $67.5
call price is $1067.5
=rate(6,67.5,-1135.25,1067.5)
rate=5.07%
Answer: While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
Explanation:
The options to the question are:
A) He believes that the actual likelihood of his death occurring in the next twelve months is really much greater than the actuarial estimate.
B) While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
C) Mr. Weed is not rational.
D) A or C
E) None of the above
From the question, we are informed that Robert Weed is considering purchasing life insurance and that he must pay a $180 premium for a $100,000 life insurance policy.
His beneficiary will get $100,000 if he dies and get nothing of he doesn't die. Even though there's a 0.001chanve of him dying, he eventually bought the insurance.
The reason for him buying the insurance is because EMV he realized that the utility that he will derive from buying the insurance is positive, and high. He believed that paying $180 for a chance to get $100,000 was worth the risk even if he had a slim chance of dying.
I don’t get this answer but ok
Answer: Are you bored because i am
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