Answer:
C. The government pays farmers $100 per ton of wheat produced.
Explanation:
Subsidy is grant/ financial aid given by government to producers of a commodity, to enable its availability in markets at a lower price.
Government paying farmers $100 tone per wheat produced is a subsidy as : It is a financial assistance given by government to reduce wheat's price in markets.
Bank's low interest rate to farmers is just credit ease policy ; Govt putting a tax on wheat imports is opposite of subsidy ; Farmer paying govt $100 per unit wheat is also a form of tax (opposite to subsidy).
The opposite of a non convertible currency would be a convertible one
Answer:
a. 6.7%
b. 12.0%
Explanation:
a. DDM
Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.
Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate
Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%
Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06
Return on equity = 6.7%
b. SML
Security Market line method uses calculates the cost of capital using following formula
Re = R
f + β ( Rm − R
f )
Rf = Risk free rate
β = stock beta
Rm = Market rate
Re =Expected rate
Re = 5.9% + 1.20 ( 11% - 5.9% )
Re = 12.02%
You have to do A. Address problem with counterplan I just took the unit test I know for sure
Answer:
Please refer explanation
Explanation:
A. Many small shops sell different styles of sweaters. Some stores sell higher-quality and more expensive sweaters then other stores.
1. many
2. differentiated
3. easy
4. price-searcher
Monopolistic competition is whereby there are many firms selling similar products and services but are not perfect substitutes. They may be different in quality, design or style. Barriers to entry are low and any one firm’s decision does not necessary affect all others. These firms tend to have limited price setting powers and they make use of heavy adverting and brand differentiation.
B. Hundreds of high school students who require tutoring in algebra choose among dozens of tutoring companies offering similar services.
1. many
2. standard
3. easy
4. price-taker
Perfect competition is a market structure where there are many firms selling homogenous or commodity products, such as a fruit or vegetable vendor. They do not have the ability to influence the price and they take the price that they receive. There is free flow of information between sellers and buyers regarding the goods sold as well as the prices of goods and services sold. Firms can easily enter and exit the market.
C. Four Internet providers offer similar services to almost everyone in the city. Any new company would have to engage in a price war with the existing companies.
1. few
2. standard
3. challenging
4. oligopoly
Oligopoly is an imperfect market structure with a small number of firms who are impacted by each other’s actions. Oligopolies may collide either explicitly or tacitly in order to restrict output or fix prices and achieve above normal market returns. Government policies and regulations are placed to encourage or discourage oligopolistic behavior and ensure that consumers are not exploited.
D. Only one pharmaceutical company has a government patent to sell an experimental drug.
1. one
2. unique
3. impossible
4. monopoly
A monopoly refers to a single company dominating the market in an industry. It has a proportionately large market share. This can be due to an absence of proper restraints. They have control of the price in the market for that product. There are very large batters to entry and exit, they exploit economies of scale and are able to make abnormal profits in the industry.
