Answer: $1000
Explanation:
To calculate the normal cost of this activity, we will use the formula:
Cash slope = (Crash cost - Normal cost) / (Normal duration - Crash duration)
250 = (1500 - Normal cost) / (15 - 5)
250 = (1500 - Normal cost) / 10
Cross multiply
(250 × 10) = 1500 - Normal cost
2500 = 1500 - Normal cost
Normal cost = 2500 - 1500
Normal cost = $1000
false Hedging, or lowering risk, is the same as increasing the firm's value or return.
<h3>How might currency risk be reduced through hedging?</h3>
hedging to reduce the risk of currency loss. Foreign exchange risk is an unavoidable reality for businesses doing business in other countries, although hedging can help reduce the risk. By taking a contrary position in a comparable asset, the hedging technique seeks to reduce risks associated with financial assets.
<h3>What does hedge mean?</h3>
A approach for reducing the risks associated with financial assets is hedging. It uses market tactics or financial instruments to reduce the risk of any unfavorable price changes. To put it another way, investors use a trade in another investment to protect one investment.
To know more about hedging, or reducing risk, visit:-
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Answer:
The economic surplus will decrease by $2.20
Explanation:
$81.40 and $79.20 are <em>marginal </em>cost and benefit, which are the changes to total costs and total benefits due to producing and consuming one additional barrel of oil.
They can be used to calculate <em>change </em>to economic surplus, which is the change to the net economic value received by society, which is given by:
marginal benefit - marginal cost = $79.20 - $81.40 = - $2.20
Answer: Increase; increase
Explanation:
Efficiency is so vital to business and manufacturing. The ability of a business to produce and curb minimal loss will give a boast on production and encourage manufacturers to do more, especially when they have the ability to produce in large quantity (by batches) and still get a good ratio for the number of goods manufactured. This is where machines has aided productivity, as they were introduced, productivity increased and they were minimal loss and time waste when producing. When technology allows for more of this effective machines, manufacturers will produce more and there would be a boast in investment.
