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Mnenie [13.5K]
3 years ago
14

A farmer lives on a flat plain next to a river. In addition to the farm, which is worth $F, the farmer owns financial assets wor

th $A. The river bursts its banks and floods the plain with probability P, destroying the farmIf the farmer is risk averse, then the willingness to pay for flood insurance unambiguously falls when:________. A) F is higher, and A is lower.B) P is lower, and F is higher.C) F & A are higher.D) P is lower, and A is lower.E) A is higher, and F is lower.
Business
1 answer:
Korolek [52]3 years ago
4 0

Answer:

E) A is higher, and F is lower.

Explanation:

If the farmer is risk averse, he tends to always take the decision which will minimize risk.

His financial assets (A) are not affected by floods, so the higher they are, less likely he will be to pay for flood insurance.

If P is the likelihood of a flood happening, the lower the risk P, then the lower the willingness to pay for flood insurance will be.

If F is lower, then the farmer is unlikely to spend money insuring the farm.

Therefore, analyzing the answer choices, the only that fits the above description is E) A is higher, and F is lower.

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Answer:

It is an important factor in diet

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People nowadays are very worried about their diet and they demand brands to mention everything which is included in the food. It is an important factor in the diet as it contains information from nutrients, fats, proteins and sodium. Overall, it is an important factor and most of the food authorities around the world have made laws to put nutrient facts panel on the food boxes.

4 0
3 years ago
a good marketer can identify potential opportunities by paying close attention to environmental ________; it is important to con
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Paying close attention to environmental factors leads to potential opportunities for a good marketer. Such factors include market competition, consumer demand, etc.

   

<h3>What are the factors affecting marketer success?</h3>

The followings are factors affecting marketer success:

  • Economic Environment
  • Market Competition
  • Legal Environment
  • Demographic Factors

Thus, there are many other factors that good marketers need to focus on so that they can identify potential opportunities.

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3 0
2 years ago
Read 2 more answers
Suppose you have a dinner gift certificate for $20. You can use it to order meatloaf or pot roast. Meatloaf costs $12, and pot r
antiseptic1488 [7]

Suppose you have a dinner gift certificate for $20. You can use it to order meatloaf or pot roast. Meatloaf costs $12 and pot roast costs $14. Meatloaf and pot roast are both worth $15 to you. The dollar value of the opportunity cost of choosing meatloaf instead of pot roast is $15 EX.

<h3>What Is Opportunity Cost?</h3>

Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked. Understanding the potential missed opportunities when a business or individual chooses one investment over another allows for better decision making.

Opportunity cost is often overlooked by investors. In essence, it refers to the hidden cost associated with not taking an alternative course of action. If, for example, a company pursues a particular business strategy without first considering the merits of alternative strategies available to them, they might fail to appreciate their opportunity costs and the possibility that they could have done even better had they chosen another path.

Formula Of Opportunity Cost

​Opportunity Cost=FO−CO

where:

FO=Return on best forgone option.

CO=Return on chosen option.

​

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8 0
2 years ago
kenny is considering creating a testamentary trust. which of the following is not a feature of a testamentary trust? a.creation
bonufazy [111]

A testamentary trust could be established to oversee the charitable asset distribution in accordance with the decedent's desires.

A Testamentary Trust: What Is It?

A trust that is created in line with the directions in a last will and testament is known as a testamentary trust. A trust is a fiduciary arrangement that enables a trustee—a third party—to manage resources on behalf of the trust's beneficiaries.

A person's instructions for creating a testamentary trust may be included in their will, allowing the trustee to disperse their assets to the designated beneficiaries. A testamentary trust, however, is not established until the person has gone away. Additionally, a testamentary trust may appear more than once in a will.

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4 0
1 year ago
4. The Mexican peso has weakened considerably relative to the dollar, and you are trying to decide whether this is a good time t
LenKa [72]

Answer:

The forecast exchange rate in one's year time according to Goldman Sachs is MXN 14.25/USD

Explanation:

The fact that the Mexican Peso will lose 15% of its value to the dollar means that a dollar will command 15% of the current Peso value  in  a year's time.

Mathematically, MXN 9.5*1.15= MXN14.25 in a year's time.

It also implies that a Mexican with dollars wanting to convert into MXN in a year's time will receive more Peso compared to now.

5 0
3 years ago
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