Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
Explanation:
The coarse theorem:
If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.
Answer:
$700
Explanation:
Given that
Price of a 3 month put option = $3
Price of a 3 month call option = $4
Considering the above
Selling the straddle = sell a put + sell a call
Thus,
Total premium income from selling a stradle = (P + C)100
Where,
P is price of put
C is price of call
Therefore,
Total premium from selling a stradle
= (3 + 4)100
= 7 × 100
= $700
If a group of students are measuring the number of paper bags brought to a recycling center in a single day, they are collecting data.
Stating a hypothesis is making an educated guess as to how many bags would be brought to the recycling center each day.
Drawing a conclusion would be when all of the data has been collected and examined.
Analyzing data would be going back to look at the collected data from the research project to see if the hypothesis was correct, what determinations were made and if any discoveries were made.
Answer:
$500 shrinkage
Explanation:
Calculation to determine the amount of shrinkage occurred during the month
Using this formula
Shrinkage=Ending inventory-Actual count
Let plug in the formula
Ending inventory=$10,000 + $35,000 - $30,000 Ending inventory= $15,000
Shrinkage=$15,000 - $14,500
Shrinkage= $500
Therefore the amount of shrinkage occurred during the month is $500
