Answer:
C) The invisible hand
Explanation:
Daniel here seeking to produce and increase his welfare is "led by an invisible hand" to negotiate with his suppliers and to sell goods to his neighbors in a way that everybody is better off as a result from these transactions.
This is also a clear example to what Adam Smith was referring to the invisible hand:
"in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " Adam Smith, The Wealth of Nations, Book 4, Chapter 2
Answer:
The correct answer is the option D: path dependence.
Explanation:
To begin with, the concept called as <em>''path dependence''</em> in the field of management and economics, is known for refering to the situation where the past decisions of a person affects the current situation that the person is going through and therefore it is said that the dependence is in the path that the person choose.
To sum up, the scenario illustrated in the case of Iceberg Storage relates to a case of path dependence due to the fact that its managers decided to invested in something that the competitors did not and therefore to take risks knowing that a possible damage can occur in the future, and eventually it did.
Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.
Demand is when people are willing to buy and pay for goods and services at a certain time, while supply is the amount of goods and services available by suppliers to consumers.
There is usually an interaction between the sellers of a resource and the buyers for that resource hence supply create and make available resources while demand pay for the available resources.
Therefore, Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.
Learn more: brainly.com/question/4803223
Answer:
Account 1 with a Interest rate 2%, Interest compounded daily ♡ hope this helps ♡
Answer:
Yes we should go with this project because it has a positive NPV of $4,350
Explanation:
We need to calculate the net present value of the machine to decide whether to invest in the machine or not.
As per Given Data
Costs $270,000
Cash Inflows
Year 2 $100,000
Year 3 $150,000
Year 4 $75,000
Interest Rate = 6%
Net Present Value
As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.
Year Cash Inflows Discount factor 13% Present values
Year 0 $(270,000) (1+6%)^-0 $(270,000)
Year 2 $100,000 (1+6%)^-2 $89,000
Year 3 $150,000 (1+6%)^-3 $125,943
Year 4 $75,000 (1+6%)^-4 <u>$59,407 </u>
Net present value <u>$4,350 </u>
