Answer:
Option (A) is correct.
Explanation:
Given that,
Implicit costs per week = $200,000
Average explicit cost per banana = $0.25 per banana
Per week bananas sold = 1 million
Explicit cost = Average explicit cost per banana × No. of banana sold
= $0.25 × 1,000,000
= $250,000
Total revenue = No. of banana sold × Selling price of each banana
= 1,000,000 × $0.50
= $500,000
Accounting profit = Total revenue - Explicit cost
= $500,000 - $250,000
= $250,000
Economic profit:
= Total revenue - Explicit cost - Implicit costs
= $500,000 - $250,000 - $200,000
= $50,000
Answer:
The broker should respond that the Specialist (DMM) on the NYSE flooris obligated to buy the stock at the current market.
Explanation:
Now under the NYSE rules, to make a nonstop market in the assigned stock. A customer is will always be guaranteed that the trade will be executed - on the other hand, the price at which the trade is effected is constantly subject to various market conditions.
So the best response from the broker is that the Specialist (DMM) on the NYSE floors is required to buy the stock at the current market.
Answer:
6.67 years
Explanation:
The number of years for the firm to reach the desired value of $1.2 million can determined using the nper formula in excel as below:
=nper(rate,pmt,pv,-fv)
rate is the interest rate earns by the fund at 10% per year
pmt is the addition to the fund in each year which is $50,000
pv is the current amount in the fund which is $400,000
fv is the desired value of $1.2 million
=nper(10%,50000,400000,-1200000)= 6.67 years
It would take 6.67 years for the sinking fund to reach the desired value of $1,200,000
Answer:
Domestic factor mobility. refers to the ease with which productive factors like labor, capital, land, natural resources, and so on can be reallocated across sectors within the domestic economy. Different degrees of mobility arise because there are different costs associated with moving factors between industries.
Explanation:
Answer:
1. the prices of existing bonds would rise
Explanation:
General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.
Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.
So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.
