Answer:
The answer is: D) All of the above are correct.
Explanation:
A) The state beach will tend to be overused because it is a public good that cannot exclude anyone from using it.
B) The state beach is a direct competition to other public or private beaches when it is used by the general public, since only one can be used at a given point in time.
C) The state beach is a common resource because it provides users with tangible benefits.
Answer:
C. Variable inflation is associated with high transaction costs
Explanation:
Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.
In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.
Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.
Answer:
b. helps identify the variable within a project that presents the greatest forecasting risk.
Explanation:
Sensitivity analysis refer to the financial model that measures how the variable i.e. target one should be impacted and depend on the change in the other variable that we called as an input variable
In this, it would help to identify the variable that lies within the project and provide the high risk of forecasting
Therefore the option b is correct
Answer:the quantities of some factors of production are fixed; the quantities of all factors of production can be varied - D
Explanation:
In the short run, some factors of production are fixed, which is usually the capital. Therefore for a company to increase output, it would need employ more workers, but would not increase capital.
Therefore in the short run, we can get diminishing marginal returns, which may cause marginal costs to start increasing quickly.
Also, in the short run, prices and wages fall out of equilibrium because a sudden rise in demand may lead to higher prices, and companies may not have the the capacity to respond and increase supply.
Long run
In the long run, usually greater than 6 months, all main factors of production are variable. The company has time to build a bigger one making it respond to changes in demand which means that a sudden rise in demand, would have a complimentary increase in supply to meet the demands and prices can be adjusted.
.
Answer:
Principal-agent.
Explanation:
This problem comes to play when one has to make decisions on behalf of another person.
The principal-agent problem is a conflict in priorities between a person or group and the representative authorized to act on their behalf. An agent may act in a way that is contrary to the best interests of the principal.
It can occur in any situation in which the ownership of an asset, or a principal, delegates direct control over that asset to another party, or agent.
