Risk premium.
The risk premium is the difference between the required discount rate and the risk-free rate, as measured by T-bills. This risk premium is important for computing the CAPM and other portfolio management equations.
Answer:
D) better off, its producers of fish will become worse off, and on balance the citizens of Denmark will become better off.
Explanation:
Since the world price of fish is lower than the domestic price of fish in Denmark, the consumers will be better off because they will pay a lower price for the same good which results in an increase in consumer surplus. On the other hand, domestic producers will be worse off because the world price is much lower than their own price, which will result in a decrease of the quantity supplied of domestic fish and a decrease in supplier surplus.
But the overall balance will be positive because the increase in consumer surplus should offset the decrease in supplier surplus, resulting in higher total economic surplus.
Jake Skinner used a "Single Lump Sum Credit", which means he pays a single sum instead of paying over time.
Answer:
a. Cost Leadership
Explanation:
Porter five forces of the model refers to the rivalry among competitors, bargaining power of suppliers, bargaining power of buyers, the threat of new entrants, the threat of substitution.
The competition between rivals deals with the competitors ' strengths and weaknesses so that the business does the planning appropriately.
The supplier's bargaining power indicated that the shift in the price of the product caused by the supplier's offer and the consumer is motivated to the product as the product is special which affects the overall profit
The buyer's bargaining power relates with the number of buyers and how many orders a single buyer places.
The threat of new entrants will affect the company's total position if the competitor comes on the market.
The threat of substitution is an alternate way of producing the goods and services that can also weaken your position and have a direct impact on profitability.
