The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.
Answer: Statement 1 ( Laptop) = Producer surplus
Statement 2 ( watch ) = Neither
Statement 3 ( jersey sweater) = Consumer surplus
Explanation:
Hi, Consumer surplus happens when the price that consumers pay for a product or service is less than the price they're willing to pay.
- <em>Even though I was willing to pay up to $46 for a jersey sweater, I bought a jersey sweater for only $39. </em>Consumer surplus
Producer surplus<em> </em> is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive
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<em> I sold a used laptop for $149, even though I was willing to go as low as $140
.</em>Producer surplus
- <em>I sold a watch for $59 on eBay last week. This week, someone offered me $145 for it. </em>neither
Feel free to ask for more if needed or if you did not understand something.
Answer:
It's represented by a movement along the demand curve
Answer:
$24,530, $23,530
Explanation:
Incomplete word <em>"and if the spot price in September proves to be $2,300."</em>
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Note that Call options will be exercised only if the price on expiry is greater than strike price
Strike price = $2400
Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts
<u>CASE 1</u>
Price = $2600
As price on expiry=2600 > Strike price=2400
Call option will be exercised.
Company will pay = $2400 * 10+530 = $24,530
<u>CASE 2</u>
Price = $2300
As price on expiry=2300 < Strike price=2400
Call option will not be exercised and will purchase from open market
Company will pay = $2300 * 10+530 = $23,530
Answer:
The answer is General Forge and Foundry Company selling and replacing its inventory 2.55 times per year on average.
Explanation:
We have:
The company cost of good sold = Sales x 65% = 100,000 x 65% = $65,000
The company inventory = Total current asset - Cash - Account Receivable = 85,000 - 38,250 - 21,250 = $25,500
=> Inventory turn over ratio = Cost of good sold / Inventory = 65,000/25,500 = 2.55 times or the company is selling and replacing its inventory 2.55 times per year.
So, the answer is 2.55 times.
