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Anika [276]
3 years ago
8

Define rent seeking. Rent seeking is attempting to transfer surplus from one group to another, for firms it usually involves: re

stricting supply in order to increase price. restricting supply in order to decrease price. increasing supply in order to decrease price. increasing supply in order to increase price. Do firms have a greater incentive to engage in rent-seeking behavior when demand is elastic or when it is inelastic?
Business
1 answer:
murzikaleks [220]3 years ago
6 0

Answer:

For firms, Rent Seeking usually involves: <u>restricting supply in order to increase price</u>

Explanation:

An example of rent-seeking in a modern economy is spending money on lobbying for government subsidies in order to be given wealth that has already been created, or to impose regulations on competitors, in order to increase market share.

A rent seeking firm have a greater incentive to engage in rent-seeking behavior when demand is elastic because the restriction imposed on competitors will not affect the demand for the goods.

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Ainat [17]

Answer:

A. 1/3 computers

B. 0.6 computers

Explanation:

A. The opportunity cost incurred by the US to make cars is the number of computers it would have to give up to make a car.

The US can either make 12 cars or 4 computers. For every car made therefore the US forgoes;

= 4/12

= 1/3 computers.

B. The same logic applies to Japan. They can either make 10 cars or 6 computers.

Their opportunity cost for cars is therefore;

= 6/10

= 0.6 computers

5 0
3 years ago
Vogel Corp.'s denominator for calculating diluted EPS is 57,300 weighted-average shares. Included in the denominator were 5,000
slavikrds [6]

Answer:

57300

Explanation:

5 0
3 years ago
An investor owns 5,000 shares of IBM stock, $105 per share. He thinks that there is no large rise and possible drop in price. Th
lutik1710 [3]

Answer:

If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000 .

Explanation:

Shares = 5000

Price of shares = $105

Sell Price = $112

The profit associated with the passive strategy  = $(112 - 105) × 5000

= $ 35,000

Now with covered call also included in the strategy the profit/loss from covered call can be calculated as

Strike Price = $110

Spot Price = $112

Total Shares on which Call options are sold = 50 × 100 = $5000

Total Premium received = 5000 × 4 = $20000

(Spot Price - Strike Price ) × Total Shares

= $(112 - 110) × 5000

= $10,000

Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000

= $ 10000

Hence the profit associated with the covered call writing strategy

= $35,000 + $10,000

= $ 45,000

5 0
3 years ago
What is meant by internet?​
love history [14]

Answer:

internet is a vast computer network providing communication and information throughout the world and it is easily accessible nowadays ❤️

7 0
2 years ago
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Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key deci
Ksivusya [100]

Answer: Sensitive analysis

Explanation:

Sensitivity analysis this is a financial standard that is used to regulate how target variables can be affected based on changes in other variables which known as input variables. This is also known as what-if or simulation analysis. It is a way used in predicting an outcome of a decision under a known range of variables.

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3 years ago
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