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2 years ago

Classify the following topics as relating to microeconomics or microeconomics.

Business

1 answer:

NISA [10]2 years ago

5 0

Answer:

Related to Micro Economics : A, B, C, E.

Related to Macro Economics : D.

Explanation:

Micro Economics is the study of a single individual consumer, producer, industry. Eg - Price of a good

Macro Economics is the study of all consumers, producers, industries of the economy at a whole. Eg - General Price level.

Both Micro Economics and Macro Economics deal with aggregates. But:- Micro Economic aggregates have lower level of aggregation & are contextually less related to wide total, than Macro Economics.

Micro Economics : 'A student's decision about how to allocate his time between studying two subjects' ; 'A firm's decision on which production method to use' :- are related to single economic units.

'The effect of rent control on the housing market' ; 'The effect of externality on the quantity produced by the market' :- are related to only those particular industry markets & not to economy as a whole.

Macro Economics : 'The effect of an increase in income tax on national income' :- is an impact of country's government policy at its whole national income.

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In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price fo

Anettt [7]

Answer:

$24,530, $23,530

Explanation:

Incomplete word "and if the spot price in September proves to be $2,300."

Note that Call options will be exercised only if the price on expiry is greater than strike price

Strike price = $2400

Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts

CASE 1

Price = $2600

As price on expiry=2600 > Strike price=2400

Call option will be exercised.

Company will pay = $2400 * 10+530 = $24,530

CASE 2

Price = $2300

As price on expiry=2300 < Strike price=2400

Call option will not be exercised and will purchase from open market

Company will pay = $2300 * 10+530 = $23,530

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2 years ago

Toyota has been working alongside us for years, but we just heard the bad news: they’re not renewing our electric vehicle (EV) c

klemol [59]

Answer:

The right approach is Option a (Bargaining power of suppliers).

Explanation:

The concept is such an industry influences the buyer's business climate and determines the potential including its buyer to attain profitability.
The meaning is basically how very much jurisdiction a single provider has. By supplier, I represent the industries that create the manufactured goods that even the sellers refine into the finished product to something like the sellers throughout the business. If there are several suppliers during the sector because each supplier is indeed very poor.

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2 years ago

The _____ is the way in which each country’s economy links to other countries’ economies.

Burka [1]

It's definitely: Global economy

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2 years ago

Which of the following statements is true of a linear cost function? A. It presents total cost as an intercept. B. It presents

mixer [17]

Answer:

Option B It presents variable cost as a slope coefficient

Explanation:

The reason is that the total cost function is:

Y = a + bx

The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.

So the right answer is option B.

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2 years ago

A new corporate bond is being offered for $930. The bond has a face value of $1,000 and matures in 10 years. The coupon rate is

PilotLPTM [1.2K]

Answer:

The answer is 7.65%

Explanation:

The cost of capital is equal to the cost of debt in this example as it involves a debt instrument. The formula for the cost of debt is as follows:

(Interest Expense x (1 – Tax Rate) ÷ (Amount of Debt – Debt Acquisition Fees + Premium on Debt – Discount on Debt)

In the example, the given values are the following:

Interest Expense = 7% x $1,000 = $70 (no tax rate was provided)

Amount of debt = $1,000 (face value of the bond)

Debt acquisition fee = $15

Discount on debt = $70 ($1,000 face value vs. the $930 proceeds of the bond, the bond was issued at a discount)

Solution:

$70 ÷ ($1,000 - $15 - $70) = 7.65% cost of capital (cost of debt)

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2 years ago