The call in this scenario is known as Out of the money (OTM).
Out of the money is when an option has no intrinsic value but rather, has an extrinsic value.
- Here, the current stock price is below the strike price of 201,then, we say that the call is out of money.
- A call option is called Out of the money when the underlying price is trading below the strike price of the call.
Hence, the call in this scenario is known as Out of the money (OTM)
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Answer:
The correct answer is B. $1,800.00
Explanation:
LIFO Perpetual table is attached.
The table shows purchases, sales and balance of each period.
As the final inventory is 120 units, we suppose the sales of the year. Applying LIFO, our ending inventory cost is 120 units, each one at $15
So, total cost is $1800 (120* 15)
Answer:
(i)New firms will enter the market.
(iii)In the long run, all firms will be producing at their efficient scale
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market price is set by the forces of demand and supply.
If firms are earning positive profits, in the long run new firms would enter into the industry and this woold drive positive profits to zero. As a result , firms would be operating at the efficient scale.
I hope my answer helps you
How will goods or services be produced? is the basic basic economic question does this decision answer in a free market economy.
<h3>What is a Market economy?</h3>
In a market economy, firms and individuals interact to determine how much goods and services should cost and how to best allocate scarce resources. This word often refers to an economy that is more market oriented overall, however there may be some government intervention or central planning.
Classical economists like Adam Smith, David Ricardo, and Jean-Baptiste Say created the theoretical framework for market economies. These traditional liberal proponents of the free market thought that the "invisible hand" of the profit motive and market incentives typically led economic decisions in directions that were more productive and efficient than government economic planning.
Learn more about market economy
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