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erma4kov [3.2K]
3 years ago
14

The basic idea behind moral hazard is that ________.

Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer: people tend to take more risks if they do not have to bear the costs of their behavior

Explanation:

Moral hazard is a form of reckless behavior by an individual who doesn't directly bear the cost of the reckless behavior.

Moral hazard takes several forms like the examples of : polluting waters with chemicals, throwing refuse into drainage, mismanagement of public amenities.

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A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%
givi [52]

Answer:

3.4%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

9.7 = 5.2 + 1.34(x - 5.2)

9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

4 0
3 years ago
?fournotts printing inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. this is an ex
vovangra [49]
This is an example of business marketing.
When somebody sells their goods and services to individuals or organizations for purposes other than personal use, that would be considered business marketing. These corporate offices won't use the goods for their personal use, but rather for work.
8 0
3 years ago
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They rec
Alla [95]

Answer:

Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)

Explanation:

they have two options:

  • option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
  • option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).

The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.

6 0
3 years ago
Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If sean charge
pochemuha

The answer is $7 because Marginal revenue is the change in total revenue from 10 customers ($400) to 11 customers ($407)  How a monopolist maximizes profits

How does a monopolist determine its profit-maximizing level of output How does it determine the price that it charges?

The monopolist will select the profit-maximizing level of output where

                                      MR = MC

and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

How a monopolist maximizes profits

 Because Chuck, a sole commercial airplane operator in small isolated town, has no  competition, he has complete control of market price of air travel in his small tone

 Reduced price → increase in ticket sales

 Monopoly maximizes profit by choosing an amount of profit in which marginal revenue  equals marginal cost (MR= MC)  Since Chuck must reduce his price to sell more units, he has an incentive to sell a  smaller quantity than a perfective competitive company

Learn more about Marginal revenue :

brainly.com/question/10822075

#SPJ4

3 0
2 years ago
Alicia is working on a presentation about the top 10 employees of the month in her office. She wants to add a bold effect to the
frutty [35]

Answer: Highlight the headings in bold and choose your preferred colour.

Explanation:

For Alicia To add a bold effect on the word, she has to highlight the word she wants to work with and increase the size to your desired colour, this is also applicable to choosing preferred colour

6 0
3 years ago
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