A,B,C, or D on 8-10_________

"Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,190 for sure. What is the

In-s [12.5K]

Answer: a. U.S. Treasuries with 1 year to maturity

Explanation:

The Government guaranteed the price of the carbon and the payoff is to be one year later.

The opportunity cost will therefore be a similar Government security to the payoff term of the carbon sale which is 1 year.

The Government security with a similar payoff term is the US Treasury bill with 1 year left till maturity and this will be the opportunity cost because instead of the Government issuing and paying out that security they will instead pay for the carbon.

4 0

3 years ago

Suppose there are only two producers of aircraft in the world, AirCraft in the United States and AirEurope in the European Union

Jlenok [28]

Answer:

1. AirEurope should produce if it wants to maximize its profit.

2. False

Explanation:

New payoffs after subsidy:

Aircraft/ AirEurope Produce Not Produce

Produce -3 , <u>6</u> 75 , 0

Not Produce 0 , 74 0 , 0

With a $9 million subsidy, regardless of whether Aircraft produces or not, AirEurope should<u> produce</u> if it wants to maximize its profit.

The statement is false (Aircraft would earn a negative payoff if it enters).

8 0

3 years ago

A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thou

Oksanka [162]

Answer:

2. Limited supply would increase the price

Explanation:

In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.

Expected sales being 500 units per month.

During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.

Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.

And since the supply is limited, the seller will have to increase the price as the demand is lot more.

7 0

3 years ago

At the beginning of the year, Saratoga Dress Co. had an inventory of $300,000. During the year, the company purchased merchandis

svet-max [94.6K]

Answer:

The cost of goods sold and the ending inventory, respectively, were: $660,000 and $490,000

Explanation:

Saratoga Dress Co. had gross profit rate of 45%

Gross profit rate = (Gross Profit/ Sales)x 100%

Gross Profit = (Gross profit rate x Sales)/100% = (45% x $1,200,000)/100% = $540,000

Cost of Goods Sold = Sales - Gross Profit = $1,200,000 - $540,000 = $660,000

The ending inventory = the beginning inventory + purchasing merchandise - Cost of Goods Sold = $300,000 + $850,000 - $660,000 = $490,000

3 0

3 years ago

Evaluate the internal processes or strategies within an organization in which you are involved, such as your workplace, school,

iogann1982 [59]

Answer: idk lol

Explanation: c is right

4 0

3 years ago

A,B,C, or D on 8-10__________