Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends
1 answer:
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Answer:
Californian citizen
Explanation:
For a Californian citizen, the maximum number of meals and units of leisure they could possibly acquire per day are:
For a Mississippi citizen, the maximum number of meals and units of leisure they could possibly acquire per day are:
Both citizens can acquire the same number of meals, but the Californian citizen can acquire twice as many units of leisure than the Mississippi citizen. Therefore, the Californian citizen is more well-off in terms of the bundles of goods they can consume.
Answer:
See Below
Explanation:
We can use the future price formula here, which is:
Where
F is the theoretical future price
P is the present index standing
r_f is the risk free rate
d_y is the dividend yield
n is the number of months of the futures deliverable
Now,
given
P = 395
r_f = 0.1
d_y = 0.03
n = 3
Substituting, we get:
Actual future price is 404. The index future price is higher. So the strategy would be to sell the futures contracts. Long the shares underlying the index.