Answer:
Market Principal notes that there should be no arbitration in the efficient market unless there is some arbitration so an efficient market system can quickly neutralize the situation.
The futures market for May, in the example above, is trading at $3.82 while the spot price is $3.45. The spot price month is listed but carriage costs and transportation are given as $0.20 and $0.03 per month.
This gives us a total price of $3.68 and this means the futures market is priced at a premium of $0.14.
3.82-= 0.14 (3.45 + 0.20 + 0.03)
This is not normal, of course, and traders will start shortening futures prices when going on the spot contracts for long. This would drive down the price of the futures while increasing the spot price, which should stabilize at $3.75.
Nevertheless, it is necessary to remember that in such equation there is also a borrowing fee which must also be taken into account. If the interest rate is 6 percent a year so it also takes into account a monthly finance fee of 0.5 percent of the contract value.
Explanation:
Efficiency reduces hunger and malnutrition because goods are transported farther and quicker. Also, advances in efficiency allow greater productivity in a shorter amount of time. Efficiency is an important attribute because all inputs are scarce.
Answer:
Over= $16,000 favorable
Explanation:
Giving the following information:
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glazier’s predetermined overhead rate is $5.00 per direct labor hour.
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 5*42,000= 210,000
Over/under allocation= real MOH - allocated MOH
Over/under allocation= 194,000 - 210,000= 16,000 favorable
When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this effort most relates to the concept of sustainability.
<h3>
Concept of sustainability:</h3>
- Meeting current requirements without compromising the ability of future generations to meet their own needs is referred to as sustainability.
<h3>
When marketers work in controversial or polluting?</h3>
- Marketers are largely prevented from becoming conscientious marketers when they operate in contentious or destructive businesses like cigarettes or fossil fuels.
- Vashon, a manager at a marketing research company, is attempting to ascertain whether his company adhered to ethical standards when it carried out its most recent study.
<h3>
What is ethical and unethical advertising?</h3>
- Advertising that adheres to ethical standards will highlight the distinctions between the marketed goods and services and those offered by rival businesses.
- While unethical advertising aims to confuse consumers by using a logo and messaging that are similar to those of the opposition.
<h3>
What is unethical advertising give examples?</h3>
- This is best illustrated by the promotion of dangerous goods like cigarettes.
- Given the high rate of lung cancer and other diseases linked to smoking among smokers, many would view cigarette advertising as an unethical business strategy.
Learn more about sustainability here:
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