Higher interest rates mean that if you invest money in a given currency, you will get a bigger return of this money. So higher interest rates attract people to this currency, especially to place their savings in this currency.
This will mean that people will buy this currency: the demand for it will increase, and with an increased demand, the value of the currency will increase.
So higher interest rates are a force that will lead to an increase of the value of this currency. Together with other forces that will lead to a decrease of this value, they will lead to a fluctuation in the exchange rate.
MasterCard could use the data warehousing strategy by making its cards acceptable for any transaction in any place.
Data warehouse plays an important role in the competitive market for MasterCard. As the data has been turned into Business Intelligence (BI), which enables individuals, banks and companies to make strong decisions with regard to payment through electronic means.
The data warehousing could be used by MasterCard to gain a distinct advantage over its competitors. As previously Visa represents around 50% of charges for products sold overall while MasterCard was only at 25%.
An example of using Data warehousing is such that banks can issue MasterCard which if used on Aircraft or Restaurants then these banks can use this data to arrange offers and other benefits to motivate cardholders to spend more with their MasterCard. They could even offer limited time openings such as to pay for room or buy exclusive items during shopping.
The answer would be hybrid market
Answer:
1a. $500
1b. $250
2. The market for sunscreen is efficient because total surplus is maximum.
<em>Diagram in question attached</em>
Explanation:
1a. Consumer surplus is the difference between the maximum price that consumers are willing to pay and the price actually paid. This is the triangular area above the market equilibrium. In the market for sunscreen, consumers are willing to pay $20 for sunscreen but are actually only paying $10 (equilibrium price).
The formula for consumer surplus = 1/2 x (Qd at equilibrium) x (price willing to pay - price at equilibrium)
<em>Note that consumer surplus is a triangle and the area of it is being found, hence the 1/2 :)</em>
Consumer surplus = 1/2 x 100 x ($20 - $10)
1/2 x 100 x $10 = $500
1b. Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. This is the triangular area below the market equilibrium. In the market for sunscreen, suppliers are willing to produce at $5 but are actually receiving $10 (equilibrium price).
The formula for producer surplus = 1/2 x (Qs at equilibrium) x (price at equilibrium - price willing to receive)
Producer surplus = 1/2 x 100 x ($10 - $5)
1/2 x 100 x $5 = $250
2. The market for sunscreen is efficient because total surplus is maximum. Total surplus is maximized when the market is producing at the equilibrium price as in the current sunscreen market. At any other price, consumer or producer surplus would be reduced and a dead weight loss would be incurred.
That statement is false.
To ensure the effective communication, the body of report should only include general information, problem/challenges, sources, and methods.
Extensive detail should be placed on the later pages where the shareholders could personally read it by themselves.