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8090 [49]
3 years ago
6

Suppose you found out that the Japanese are on the verge of introducing their own mayonnaise substitute next month. Sam does not

know this and has just turned down your final offer for the insurance. Assume that Sam tells you SCAM is only six months away from perfecting its mayonnaise substitute and that you know what you know about the Japanese. Would you raise or lower your policy premium on any subsequent proposal to​ Sam? Based on his​ information, would Sam​ accept? A. You would raise your policy premium substantially and Sam would not accept because he​ doesn't know about the Japanese. B. You would raise your policy premium substantially and Sam would accept because the higher premium would signal there was a greater chance of a loss. C. You would not offer Sam a policy at any premium because given the new​ information, Sam will almost certainly sustain a loss.
Business
1 answer:
fiasKO [112]3 years ago
4 0

Answer: A. You would raise your policy premium substantially and Sam would not accept because he​ doesn't know about the Japanese.

Explanation:

In such a scenario as the one described above, the best option as an Insurance Agent is indeed to raise premiums substantially.

As the Japanese will most probably get to market first with the new Mayonnaise Substitute, they will have the rights to it's invention and could even patent it.

This means that Sam and SCAM will most likely suffer a loss as a result of this.

As there is such a high chance of loss, charging a substantially higher premium to enable coverage is only logical and makes business sense.

Sam does not know however that the Japanese are so far ahead and having rejected a substantially lower offer, will reject the newer, substantially higher one as well.

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Gentrification can cause low rents, immigration, and increasing population.

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Between the u. s. and nepal, nepal invests less in new factories and equipment. This will likely cause?
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Capital goods are bodily assets that a company makes use of within the manufacturing process to fabricate products and services that consumers will later use. Capital goods include buildings, equipment, system, automobiles, and gear.

Capital goods check with merchandise that can be used within the manufacturing of other merchandise but isn't included in the brand new product. these consist of gadget tools, commercial equipment, method plant gadget, production & mining gadget, electrical system, fabric equipment, printing & packaging machinery, and so on.

Capital items are the assets used by agencies within the course of producing their services and products and can consist of homes, equipment, gear, and equipment.

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​Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before Fattening Feedlots can deliver the stee
svlad2 [7]

In this case the perfect tender rule

b. does not apply.

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The perfect tender rule has certain exceptions where it cannot be applied to the tender parties and the probates of the tender.

If there is a government ruling against the use of certain products that are necessary for the tender to be completed and the outlaw happens after the tender is signed but before it is completed as a consignment then it cannot be done.

This would come under the ambit of an emergency where the governed ruling makes such deals null and void.

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g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,
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Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
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Therefore, expansionary monetary policy shifts AD to the right.

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