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MrMuchimi
3 years ago
9

If you could purchase IBM stock and simultaneously sell the stock for $5 more, you would be involved in one type of economic act

ivity?a. indifference principleb. arbitragec. carry traded. marked to markete. none of the above
Business
1 answer:
ddd [48]3 years ago
3 0

Answer:

arbitrage

Explanation:

Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.

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7 0
3 years ago
Which type of competitive strategy is characterized by convincing rivals not to enter a price war, protection from customer pres
Varvara68 [4.7K]

Answer:

Overall cost leadership.

Explanation:

Cost leadership can be defined as to lowest cost that is available in an industry. A cost leader in an industry has achieved a competitive advantage by being able to give the lowest price compared to other businesses in the market

Even where there is high competition businesses with low cost advantage perform well and have good profit margins.

So to avoid overall cost leadership firms convince rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers.

4 0
3 years ago
For each of the following characteristics, check which types of firm it describes: a monopoly firm, a monopolistically competiti
kobusy [5.1K]

Answer:

1. Faces a downward-sloping demand curve  

  • BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS HAVE A DOWNWARD SLOPING DEMAND CURVE

2. Has marginal revenue less than price  

  • ONLY MONOPOLIES

3. Faces the entry of new firms selling similar products  

  • NEITHER, SINCE MONOPOLISTICALLY COMPETITIVE FIRMS OFFER DIFFERENTIATED PRODUCTS, NEW COMPETITORS WILL NOT OFFER SIMILAR PRODUCTS. MONOPOLIES HAVE THE ADVANTAGE OF BARRIER ENTRIES THAT PREVENT NEW FIRMS FORM ENTERING THE MARKET.

4. Earns economic profit in the long run  

  • ONLY MONOPOLIES, BECAUSE MARKET BARRIERS PREVENT NEW FIRMS FROM ENTERING THE MARKET.

5. Equates marginal revenue and marginal cost  

  • BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS MAXIMIZE ACCOUNTING PROFITS AT THIS POINT

6. Produces the socially efficient quantity of output

  • NEITHER
3 0
3 years ago
On January​ 1, 2018, Wonderland Sales issued $28,000 in bonds for $20,300. These are eight−year bonds with a stated interest rat
Nimfa-mama [501]

Answer:

$20,781.25

Explanation:

Bond carrying amount after the first interest payment on June​ 30, 2018:

= Carrying value of bond On January 1, 2018 + Amortization of discount on June 30, 2018

=20,300+\frac{(28,000-20,300)}{8\ years\times2}

=20,300+\frac{7,700}{16}

      = 20,300 + 481.25

      = $20,781.25

3 0
3 years ago
Consider the following information regarding a person's decision to go to college college tuition is $20,000 per year, room and
Ostrovityanka [42]

Answer:

$50,000

Explanation:

The computation of the cost of going the college is shown below:

= College tuition fees per year + boarding fees per year + books and materials charges per year + earnings while working

= $20,000 + $10,000 + $2,000 + $18,000

= $50,000

For computing the cost of going to the college we simply added the total cost that is mentioned in the question so that the accurate amount could come

7 0
3 years ago
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