A price regulation that put a price cap on the apartment rents a landlord is permitted to charge leads to underproduction. A monopoly leads to underproduction. The answer is both under productions in the monopoly leads and apartment rent leads.
Answer:
Principal
Explanation:
A loan can be defined as the lending of money, property, etc by one party to another party. A loan is more often than not given out by financial institutions.
The money is loaned between parties, the original amount borrowed by the receiving party is called the PRINCIPAL.
This principal begins to reduce as soon as the money starts to be paid back.
Every principal(loan) has an interest. The interest is always at a particular rate, spread over a period of time, etc.
Cheers.
Answer: The price level chosen to maximize profits will be $ 6.71
Explanation:
Whenever there is price fixing between two competitors, and one of the competitor decides to choose a price level. Such competitor must ensure that the price level chosen to maximize profit does not exceed his or her competitor's marginal cost but can be above his or her marginal cost .
Since the price fixing is $10 from previous cartel price so the best price level to maximize the profit would be less than my rival's price of $ 6.72 and more than my marginal cost of $ 6.70 which is $ 6.71
Businesses/producers make the goods and services that exist in the economy. Producers create goods or services that are available for consumers to purchase so that they are making a profit. Consumers need to be interested in the goods or services available so that the companies stay in business and help drive the economy.
Answer:
interest rate parity
(0.8/1) * (1.4*3/12)/(1.25*3/12) = 0.8
Hence It is proved that interest rate parity does not hold because the vale of forward contract is $0.79/CD.
