Answer: True
Explanation: In simple words, rule of thumb refers to generally accepted guidelines or principles that are not necessarily strict or accurate. These are nearly accurate as these are based on practical experiences rather than theory.
These guidelines helps the authorities in decision making if in case of any conflict the conflicting parties chooses to have an open discussion.
Hence from the above we can conclude that the the given statement is true.
Cost is a critical factor in determining whether something gets produced as a public good.
<u>Explanation:
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In the areas of manufacturing, science, trade and accounting, the expense is the value of money used to create or provide a service and is therefore no longer readily available. The costs can be one of acquisitions in industry, whereby the amount of money paid to buy it is deemed to be an expense.
In this case, the money is the input to obtain the object. The purchase price might be the sum of the cost of production paid from the original manufacturer and other transaction costs borne by the consumer above and beyond the price paid to the seller. The price usually often provides a profit margin on production costs.
Direct costs include consumables, related supplies, selling fees and inventory.
Answer: D. I, II, and III
Explanation:
If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.
You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.
Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.
Answer:
The correct answer is Deceptive pricing.
Explanation:
The deceptive price occurs when companies intentionally cheat customers with price promotions, which in the end are not true. These practices, under the protection of marketing, seek to generate a desire in the buyer to take the items in "discount", either due to its upcoming expiration or simply by the inventory turnover.
