Arguments supporting Freeman to be a merchant who is bound by written confirmations According to the Uniform Commercial Code, UCC, a contract may be formed by an exchange of documents, including letters, faxes, or confirmations, between the parties involved in the transaction.
The document sent by the buyer, which contains a written confirmation of the terms agreed on during negotiations, must be recognized by the seller, in this case, Freeman, for him to be bound by them. Freeman didn't object in writing to the confirmations sent by Maher, which is an implied acceptance of the terms of the sale.
Furthermore, Freeman is a farmer who sells agricultural produce and is, therefore, a "merchant" under the UCC's provisions. The merchant is bound to all written agreements, including confirmations. Therefore, Freeman is a merchant who is bound by the written confirmations.b. Arguments supporting Freeman not to be a merchant seller and thus not bound by the written confirmations Freeman didn't participate in negotiations or agree to the terms of the sale. He refused to deliver the remaining 4,000 bushels at the agreed-upon price. He also contends that he didn't enter into any agreement to sell the second 4,000 bushels of wheat to Terminal Grain.
Freeman denies the existence of a contract, which makes it unclear if he's a merchant bound by the written agreement.c. Appropriate decisionIn conclusion, Freeman is a merchant and is bound by the written agreement because he didn't object in writing to the confirmations sent by Maher. Even though he refused to deliver the remaining 4,000 bushels, he's still liable for the breach of contract. Therefore, Terminal Grain is entitled to damages.
To know more about Freeman visit:
https://brainly.com/question/25917992
#SPJ11
To finance a vacation in 4 years, Elsie saves $360 at the beginning of every six months in an account paying interest at 14% compounded semi-annually.
(a) What will be the balance in her account when she takes the vacation?
(b) How much of the balance will be interest?
(c) If she waits an additional year to start her vacation, and continues to save the same amount of money, how much more money does she have to spend?
a) The balance in her account will be $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The answer is , the balance in her account will be $2823.30 when she takes the vacation.
How to find?a) The balance in her account will be $2823.30.Rounding all intermediate values to six decimal places as needed
Compound Interest Formula: [tex]P = A(1 + r/n)^(n*t)[/tex]
Where, A = $360r = 14%/2 = 0.07 (14% per annum semi-annually)n = 2 (semi-annually)t = 4 years = 8 semi-annual periods
P = 360(1 + 0.07/2)^(2*8)
=360(1.035)^16
=$2823.296880
=$2823.30
Therefore, the balance in her account will be $2823.30 when she takes the vacation.
b) The interest on her account will be $1463.30.
Rounding all intermediate values to six decimal places as needed.
The interest on her account will be A - P, where A is the amount of money in her account after 4 years and P is the original amount invested in her account.
A = $2823.30 (from part a)
P = $360(2)
= $720I
= A - P
= $2823.30 - $720
=$2103.30.
Therefore, the interest on her account will be $2103.30.
c) If she waits an additional year to start her vacation, and continues to save the same amount of money, she will have an additional $399.18 to spend. Rounding all intermediate values to six decimal places as needed
The additional year means she saves for 5 years.
The present value of these cash flows will be the future value of 8 periods less the future value of 4 periods:
Present Value = $360(1-(1.035)^(-8))/0.035-$360(1-(1.035)^(-4))/0.035
=$1735.128882-$1336.947569
=$398.181313
=$399.18
Therefore, she will have an additional $399.18 to spend.
To know more on Interest visit:
https://brainly.com/question/30393144
#SPJ11
10. The CPI for 2001 was \( 177.1 \) and the CPI for 2002 was 1799. The annual rate of finflation between these years was a. \( 2.5 \) percent b. 79 peroent a. \( 3.6 \) percent d. \( 1.6 \) percent d
The annual rate of inflation between the years 2001 and 2002 is the correct answer is d. 1.6 percent.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. By comparing the CPI values between two years, we can calculate the rate of inflation, which indicates the percentage increase in prices over that period.
Substituting the values into the formula, we get ((179.9 - 177.1) / 177.1) * 100. The numerator represents the difference in CPI values, and the denominator is the CPI value for 2001. Multiplying the result by 100 gives us the inflation rate expressed as a percentage.
Performing the calculation, we find the inflation rate to be approximately 1.58%. Therefore, the correct answer is d. 1.6 percent. This means that, on average, prices increased by around 1.6% between 2001 and 2002. It indicates a relatively low inflation rate, suggesting that the overall price level experienced only a modest increase during that period.
To learn more about inflation click here:
brainly.com/question/8149429
#SPJ11
The government is exploring ways to finance a proposed $100 million new football stadium at Penn State University through with the most "efficient" tax possible. You are an economic adviser to public policy makers and they ask you the following question: Should the government tax houses or should they tax oil in order to finance the $100 million new football stadium at Penn State and more tax ;pvenues to the state? Why? Explain.
Friendly's Quick Loans, Inc., offers you $7.50 today but you must repay $9.85 when you get your paycheck in one week (or else).
a. What is the effective annual return Friendly's earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. If you were brave enough to ask, what APR would Friendly's say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
a.
Effective annual return
b.
Annual percentage rate
31.33
1,629.16 (
%
%
The effective annual return of the company is 16.33%.
[tex]Effective annual return = (1 + periodic interest rate)^(number of periods per year) - 1[/tex]
Where, the periodic interest rate is the total interest divided by the loan amount, and the number of periods per year is equal to 52 (since there are 52 weeks in a year).Using the given data, the periodic interest rate can be calculated as follows:
Total interest = $9.85 - $7.50
= $2.35
Periodic interest rate = Total interest / Loan amount
= $2.35 / $7.5
= 0.3133
Effective annual return = [tex](1 + periodic interest rate)^(number of periods per year) - 1[/tex]
= [tex](1 + 0.3133)^(52) - 1[/tex]
= 1,624.80%
Rounded to 2 decimal places, the effective annual return is 1,624.80%.
To calculate the APR, we use the following formula:
APR = Periodic interest rate x number of periods per year
= 0.3133 x 52
= 16.33%
Rounded to 2 decimal places, the APR is 16.33%.
Note that the APR is calculated assuming that the interest is compounded annually. However, in this case, interest is not compounded, so the effective annual return is much higher than the APR.
To know more about the company, visit:
https://brainly.com/question/30572026
#SPJ11
Figure: Natural Monopoly
Figure: Natural Monopoly
This firm’s profit-maximizing price is _____ and quantity is
_____.
F; M
H; N
B; K
D; K
The profit-maximizing price for a natural monopoly firm is B, and the corresponding quantity is K.
In the context of a natural monopoly, where a single firm has control over the market due to high barriers to entry, the profit-maximizing price and quantity are determined by the intersection of marginal cost (MC) and marginal revenue (MR).
The profit-maximizing price occurs where MC equals MR. Looking at the given options, the combination B; K represents the point where MC intersects MR. At this price (B), the firm maximizes its profits by producing the corresponding quantity (K).
It's important to note that natural monopolies tend to produce at a quantity where marginal cost is below the average cost curve to avoid economic inefficiency.
Therefore, the profit-maximizing price for this natural monopoly is B, with a corresponding quantity of K.
Learn more about Monopoly click here :brainly.com/question/31918762
#SPJ11
The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. What is the present value of the cash flows? $2,101.95 $2,144,85 $699.50 $2,187,74 $2,156.27
The present value of the cash flows is approximately $9,580.41.
To calculate the present value of the cash flows correctly using the given discount rate of 8 percent compounded quarterly:
To calculate the present value of each cash flow, we'll use the formula:
PV = CF / (1 + r/n)^(nt)
Where: PV = Present Value
CF = Cash Flow
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
Given data: r = 8% per year = 0.08
n = 4 (compounded quarterly)
t = 1 (since all cash flows are present values)
Cash flows:
CF1 = $2,101.95
CF2 = $2,144.85
CF3 = $699.50
CF4 = $2,187.74
CF5 = $2,156.27
Now, let's calculate the present value for each cash flow:
PV1 = $2,101.95 / (1 + 0.08/4)^(4*1) ≈ $2,101.95 / (1.02)^4 ≈ $2,101.95 / 1.0824 ≈ $1,942.72504
PV2 = $2,144.85 / (1 + 0.08/4)^(4*1) ≈ $2,144.85 / (1.02)^4 ≈ $2,144.85 / 1.0824 ≈ $1,982.43979
PV3 = $699.50 / (1 + 0.08/4)^(4*1) ≈ $699.50 / (1.02)^4 ≈ $699.50 / 1.0824 ≈ $646.35681
PV4 = $2,187.74 / (1 + 0.08/4)^(4*1) ≈ $2,187.74 / (1.02)^4 ≈ $2,187.74 / 1.0824 ≈ $2,018.71953
PV5 = $2,156.27 / (1 + 0.08/4)^(4*1) ≈ $2,156.27 / (1.02)^4 ≈ $2,156.27 / 1.0824 ≈ $1,990.16606
Now, let's add up all the present values to find the total present value:
Total Present Value = PV1 + PV2 + PV3 + PV4 + PV5 ≈ $1,942.72504 + $1,982.43979 + $646.35681 + $2,018.71953 + $1,990.16606 ≈ $9,580.40623
So, the present value of the cash flows is approximately $9,580.41.
Learn more about present value from the link below:
https://brainly.com/question/15904086
#SPJ11
The Glover Scholastic Aid Foundation has received a €20 million global government bond portfolio from a Greek donor. This bond portfolio will be held in euros and managed separately from Glover’s existing U. S. Dollar-denominated assets. Although the bond portfolio is currently unhedged, the portfolio manager, Raine Sofia, is investigating various alternatives to hedge the currency risk of the portfolio. The bond portfolio’s current allocation and the relevant country performance data are given in Exhibits 1 and 2. Historical correlations for the currencies being considered by Sofia are given in Exhibit 3. Sofia expects that future returns and correlations will be approximately equal to those given in Exhibits 2 and 3.
Exhibit 1. Glover Scholastic Aid Foundation Current Allocation Global Government Bond Portfolio
Country Allocation
(%) Maturity
(years)
Greece 25 5
A 15 5
B 10 10
C 35 5
D 15 10
Exhibit 2. Country Performance Data (in local currency)
Country Cash
Return 5-year Excess Bond Return (%) 10-year Excess Bond Return (%) Unhedged Currency Return (%) Liquidity of 90-day Currency Forward Contracts
Greece 2. 0 1. 5 2. 0 – Good
A 1. 0 2. 0 3. 0 −4. 0 Good
B 4. 0 0. 5 1. 0 2. 0 Fair
C 3. 0 1. 0 2. 0 −2. 0 Fair
D 2. 6 1. 4 2. 4 −3. 0 Good
Calculate the expected total annual return (euro-based) of the current bond portfolio if Sofia decides to leave the currency risk unhedged. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. )
: The expected total annual return of the current bond portfolio, if Sofia decides to leave the currency risk unhedged, is calculated by multiplying the allocation of each country by its respective excess bond return, and then summing up the results. The calculation would involve considering the allocation percentages and the excess bond return percentages for each country mentioned in the exhibit.
To calculate the expected total annual return, we need to multiply the allocation percentage of each country by its respective excess bond return percentage, and then sum up the results. For example, for Greece, the allocation is 25% and the excess bond return is 1.5% (as per Exhibit 2). So, the contribution of Greece to the total return would be 25% multiplied by 1.5%. Similarly, we need to perform this calculation for the other countries in the portfolio.
Once we have calculated the contribution from each country, we can sum up these contributions to obtain the expected total annual return of the bond portfolio. It is important to note that this calculation assumes no currency hedging, meaning the returns are based on the performance of the respective countries' bonds and their local currencies.
By performing these calculations, we can determine the expected total annual return of the bond portfolio in euros if the currency risk is left unhedged. This provides valuable information for the portfolio manager, Sofia, to assess the potential return of the portfolio and make informed decisions regarding hedging strategies and overall portfolio management.
To learn more about portfolio manager : brainly.com/question/33063147
#SPJ11
) i) Refer to the Accounting Standard AASB102 Inventories. Define the cost and net realisable of inventories. Quote the relevant paragraphs of the Standard. What is the inventory valuation rule? Quote the relevant paragraph from AASB102.
According to Accounting Standard AASB102 Inventories, cost of inventories includes all costs incurred to bring the inventories to their present location and condition. This includes the cost of purchase, conversion costs, and other costs incurred in bringing the inventories to their current state. Net realizable value, on the other hand, is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale.
Cost of inventories is defined in paragraph 6 of AASB102, while net realizable value is defined in paragraph 6.
The inventory valuation rule is mentioned in paragraph 9 of AASB102, which states that inventories should be measured at the lower of cost and net realizable value.
In conclusion, AASB102 defines the cost and net realizable value of inventories, and the inventory valuation rule states that inventories should be valued at the lower of cost and net realizable value.
To know more about inventory valuation rule visit:
https://brainly.com/question/4274651
#SPJ11
Your employer automatically puts 10 percent of your salary into a 401(k) retirement account each year. The account earns 7% annual interest compounded continuously. Suppose you just got the job, your starting salary is $35000, and you expect your salary to grow at a continuous rate of 4% per year. Find the value of your retirement account after 25 years Value =$
The value of the retirement account after 25 years is approximately $20,914.47.
The given details are:
Your employer automatically puts 10 percent of your salary into a 401(k) retirement account each year.The account earns 7% annual interest compounded continuously.
The starting salary is $35,000.The salary is expected to grow at a continuous rate of 4% per year.
The formula for continuously compounded interest is given as,
A = Pe^(rt),
where A is the final amount,
P is the principal amount,
r is the rate of interest, and
t is the time.
In this case,
P = 10% of $35,000 = $3500,
r = 7%, and
t = 25 years.
The formula for continuously compounded growth rate is given as,
A = Pe^(rt), where A is the final amount, P is the principal amount, r is the growth rate, and t is the time.
In this case,
P = $35,000, r = 4%, and t = 25 years.
Now, we can calculate the value of the retirement account after 25 years using the above formulas:
A = Pe^(rt)
A = $3500e^(0.07 × 25)
A = $3500e^(1.75)A ≈ $20,914.47
To know more about compounded visit :
brainly.com/question/30761870
#SPJ11
Question 10: Jenny is currently 20 years old and is planning for her retirement. She has \( \$ 10,000 \) in her savings account today. She plans to retire at age 40 and receive an annual benefit payme
The given information is not sufficient to determine the amount of money she will have in her savings account at the time of retirement.
Given the following information:
Jenny is currently 20 years old and is planning for her retirement.
She has $10,000 in her savings account today.
She plans to retire at age 40 and receive an annual benefit payment.
There is no information on how much money she will receive as an annual benefit payment.
Thus, the calculation of how much money she will have in her savings account at the time of retirement is not possible.However, using the compound interest formula, we can calculate how much money she will have in her savings account at the age of 40.
The formula is:
Compound interest formula:
Future Value (FV) = P × (1 + r)ⁿ
Where, P is the present value (or principal), r is the annual interest rate (as a decimal), n is the number of years, and FV is the future value (or amount of money) at the end of the n years.
Substituting the given values in the formula, we get:
FV = 10,000 × (1 + r)²⁰
When she will be 40 years old, her age would be:
40 - 20 = 20
So, n = 20
r is not given, so we cannot find the Future Value (FV) without it.
Know more about the savings account
https://brainly.com/question/30101466
#SPJ11
Libscomb Technologies' annual sales are $6,700,291 and all sales are made on credit, it purchases $3,059,202 of materials each year (and this is its cost of goods sold). Libscomb also has $505,320 of inventory, $538,622 of accounts receivable, and $455,811 of accounts payable. Assume a 365 day year.
What is Libscomb's Inventory Turnover?
Libscomb's Inventory Turnover is 13.15. Inventory turnover is an efficiency ratio that indicates how quickly a company's inventory is sold and replaced over a given time period. Libscomb Technologies' Inventory Turnover can be calculated as follows: Inventory Turnover = Cost of Goods Sold / Average Inventory The inventory turnover is 13.15, given the data in the problem.
Average inventory is computed by adding the beginning and ending inventory amounts and then dividing by 2. In this case, the average inventory is $505,320. The formula for calculating inventory turnover is as follows: Inventory Turnover = Cost of Goods Sold / Average Inventory Inventory turnover measures the number of times a company sells and replaces its inventory during a given time frame, typically a year. Inventory turnover reflects how effectively a company is managing its inventory and generating revenue from it. It provides insight into a company's supply chain efficiency, sales trends, and potential inventory management problems, among other things.150 words limitThe inventory turnover is a measurement that represents how frequently a company sells and replaces its inventory throughout a given period.
The calculation for inventory turnover is the cost of goods sold divided by the average inventory. For Libscomb Technologies, its inventory turnover is 13.15. This shows that the company has a high rate of sales and is effectively managing its inventory. The inventory turnover calculation helps businesses understand their supply chain efficiency and potential inventory management issues. With a high inventory turnover ratio, it indicates that a company is generating revenue efficiently and managing its stock effectively. On the other hand, a low inventory turnover ratio implies that the company may be experiencing sales difficulties or carrying too much inventory, resulting in excess carrying costs and decreased efficiency. Finally, inventory turnover is a useful tool for comparing businesses in the same sector or industry, as well as for forecasting future sales and inventory requirements.
Therefore, it is essential to track and manage inventory turnover, particularly for businesses that rely heavily on sales revenue.
To know more about Inventory visit :
https://brainly.com/question/31146932
#SPJ11
According to the Black-Scholes option pricing model, two options on the same stock but with different exercise prices should always have the same _________________. Group of answer choices maximum loss price implied volatility expected return
According to the Black-Scholes option pricing model, two options on the same stock but with different exercise prices should always have the same implied volatility.
Implied volatility is a measure of the market's expectations for the future price fluctuations of the stock. It is an important factor in determining the value of an option. The Black-Scholes model assumes that the stock price follows a log-normal distribution and that volatility remains constant over the life of the option.
Therefore, if two options have different exercise prices but the same implied volatility, it means that the market expects the same level of price volatility for both options, regardless of their exercise prices. The maximum loss, expected return, and exercise prices are not necessarily the same for options with different exercise prices.
Learn more about prices
https://brainly.com/question/33097741
#SPJ11
Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 10 million cases of beer were sold every month at a price of $6 per case. After the tax, 3 million cases of beer are sold every month; consumers pay $7 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of beer is per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True O False
The amount of the tax on a case of beer is $3 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is $2 per case. The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers" is False.
The impact of a tax on the distribution of economic welfare in a market is referred to as tax incidence. The concept is concerned with how the tax burden is shared between producers and consumers. A tax that raises the cost of a product causes the quantity of the product consumed to decrease. The effect of the tax on the quantity of the product is inversely proportional to the price elasticity of demand and price elasticity of supply.
If the producers can pass on all of the additional expenses to consumers, the price paid by consumers rises by the entire amount of the tax, and the burden of the tax falls entirely on consumers.
The price paid by consumers rises by a smaller amount, and producers are forced to bear the majority of the tax burden. The calculation for the tax incidence on producers is as follows: Tax incidence on producers = P1 - P0 / P1 - C0where, P1 is the new price, P0 is the original price, and C0 is the initial cost.
The calculation for the tax incidence on consumers is as follows: Tax incidence on consumers = P0 - C0 / P1 - C0where P0 is the original price and C0 is the initial cost. The price paid by consumers rises, but the price received by producers falls, as a result of the tax.
To know more about tax visit ;
https://brainly.com/question/12611692
#SPJ11
You received a call from one of your company’s department managers asking you the name of the ""mexican"" software developer in your department. This is an example of?
The scenario you provided is an example of stereotyping or racial profiling.
Stereotyping refers to making assumptions or generalizations about a person or group based on their race, ethnicity, or nationality. In this case, the department manager assumes that there is a Mexican software developer in the department solely based on their nationality.
Stereotyping can be harmful and perpetuate biases and discrimination. It overlooks individuality and assumes that all people from a particular group have the same characteristics or abilities. It is important to recognize and challenge stereotypes in order to promote diversity, inclusion, and equal opportunities.
To address this situation, it is recommended to respond to the department manager by focusing on the individual's skills, qualifications, and contributions rather than their nationality. Provide the manager with the necessary information about the software developer without highlighting their nationality.
Additionally, it is crucial to foster an inclusive and diverse workplace where employees are valued for their skills and talents rather than their nationality or any other characteristic.
Promoting diversity and inclusion can lead to a more productive and harmonious work environment where everyone feels respected and valued for their unique contributions.
For more such questions on stereotyping visit:
https://brainly.com/question/30246471
#SPJ8
A. How does successful positioning employ an understanding of consumer behavior principles? B. If people are not always rational decision makers, is it worth the effort to study how these decisions are made? Why or why not? C. What does the Just Noticeable Difference (ND) tell marketers about changing elements of their brands? D. Are consumption motives conscious or unconscious? With which theorist/researcher do you most closely agree? Why? E. If you are using emotional markethag, what are the considerations that you must keep in mind?
Emotional marketing can be a powerful tool, but it requires a deep understanding of the target audience, consistency, authenticity, compelling storytelling, and cultural sensitivity to be effective.
A. Successful positioning relies on an understanding of consumer behavior principles because it helps marketers align their products or services with the needs, wants, and preferences of their target audience. By studying consumer behavior, marketers can gain insights into factors such as consumer motivations, perceptions, attitudes, and decision-making processes. This knowledge allows them to craft effective positioning strategies that resonate with consumers and differentiate their offerings in the market.
B. Studying how people make decisions, even if they are not always rational, is still worth the effort for marketers and researchers. While humans may not always make strictly rational choices, understanding the underlying factors that influence decision-making can provide valuable insights. Consumer decisions are influenced by a variety of factors, including emotions, social influences, biases, and heuristics. By studying these decision-making processes, marketers can better tailor their marketing strategies, messaging, and product offerings to align with consumers' cognitive and emotional processes.
C. The Just Noticeable Difference (JND) is a concept from psychology that refers to the smallest detectable difference between two stimuli. In the context of marketing, JND tells marketers that changing elements of their brands should be significant enough for consumers to notice and perceive a difference. If the change is too small, consumers may not recognize it, and it may not have a meaningful impact on their perceptions or behavior. Marketers need to consider the JND when making changes to elements such as packaging, pricing, product features, or advertising to ensure that the changes are noticeable and impactful to consumers.
D. Consumption motives can be both conscious and unconscious. Some motives for consumption are conscious and driven by deliberate choices, such as the desire for a specific product's functional benefits or social status. However, there are also unconscious or subconscious motives that influence consumer behavior. These motives may be driven by emotions, psychological needs, or societal influences that individuals may not be fully aware of.
Different theorists and researchers have provided insights into consumption motives, such as Sigmund Freud's psychoanalytic theory, which emphasizes unconscious desires and motivations, and Abraham Maslow's hierarchy of needs, which focuses on conscious and unconscious motivations driven by individual needs. The choice of which theorist/researcher to agree with closely depends on personal perspectives and the specific context of consumer behavior being studied.
E. When using emotional marketing, several considerations need to be kept in mind. First, understanding the target audience's emotions, desires, and values is crucial. Emotional marketing aims to connect with consumers on an emotional level, so it's essential to identify and understand the emotions that resonate with the target audience.
Second, consistency and authenticity are vital. Emotional marketing campaigns should align with the brand's values, personality, and overall marketing strategy. Inconsistencies or perceived insincerity can undermine the effectiveness of emotional appeals.
Third, storytelling and compelling narratives can enhance emotional marketing. Engaging narratives that evoke specific emotions and create a connection with consumers can be more impactful than simply highlighting product features or benefits.
Lastly, considering cultural and societal factors is essential. Different cultures and societies may respond differently to emotional appeals, so it's important to tailor emotional marketing strategies to the specific cultural context.
Learn more about Emotional marketing here:
https://brainly.com/question/33240072
#SPJ11
: A modeling expert is building a network model for your company, but is concerned about model complexity. Identify at least three factors that increase the complexity of a network model. Why should the modeler be concerned about model complexity?
Three factors that increase the complexity of a network model are the number of nodes and connections, the volume and variability of data, and model interdependencies.
Model complexity should be a concern for the modeler because it can affect accuracy, computational efficiency, and interpretability. Complex models may introduce errors, require more resources and time to process, and be challenging to communicate effectively. Balancing complexity ensures a practical and useful network model for decision-making.
To know more about Model complexity: https://brainly.com/question/30361681
#SPJ11
ASSIGNMENT FIVE
Give an example of a company buying process. Explain the steps in
their right order.
channel.
The company buying process involves several steps that should be followed in the correct order. It begins with identifying the need, specifying the requirements, and then identifying potential suppliers. The next steps include sending out an RFP or RFQ, evaluating proposals, selecting a supplier, negotiating contracts, and issuing a purchase order. Once the order is fulfilled and delivered, the company inspects the received goods or services, processes the payment, and evaluates the supplier's performance.
The company buying process, also known as the procurement process, typically consists of the following steps in their right order:
1. Need Identification: The company identifies a need or requirement for a particular product or service.
2. Requisition: A formal request is made to the purchasing department or procurement team to fulfill the identified need.
3. Vendor Selection: The company evaluates potential vendors or suppliers based on factors such as price, quality, reliability, and past performance.
4. Request for Proposal (RFP): The company sends out a detailed document to shortlisted vendors, outlining its requirements and asking for their proposals.
5. Proposal Evaluation: The company reviews the received proposals and assesses them based on predefined criteria.
6. Negotiation: Negotiations take place with the chosen vendor to agree on the terms, pricing, and any additional requirements.
7. Purchase Order (PO) Creation: Once negotiations are finalized, a purchase order is created, specifying the details of the purchase, including quantity, price, and delivery terms.
8. Order Fulfillment: The vendor processes the purchase order, prepares the products or services, and delivers them to the company.
9. Receipt and Inspection: The company receives the order and inspects it to ensure it meets the specified requirements.
10. Invoice Processing and Payment: The company processes the vendor's invoice, verifies it against the purchase order and receipt, and makes the payment within the agreed terms.
11. Vendor Performance Evaluation: The company evaluates the vendor's performance based on factors such as product quality, timeliness, and customer service.
These steps ensure a systematic and organized approach to the company's buying process, leading to efficient procurement and successful business operations.
To know more about buying process refer here:
https://brainly.com/question/30437909#
#SPJ11
please do this short answer thanks
There is a need to understand and appreciate value and benefits. The following formula is Value = Benefits/Cost Explain what the terms means and then share a product you have purchased and apply it to
The value indicates that the benefits of the product outweigh its cost and the product is of high value to the consumer.
The formula for Value is
Value = Benefits/Cost.
This formula is utilized to gauge the worth of a particular item in relation to its cost. The Benefits refer to the advantages that the product provides while the Cost refers to the amount of money invested in obtaining the product. In this manner, when the benefits surpass the cost, it implies that the item is of high value to the consumer.
One of the products I have purchased recently is a wireless charger for my smartphone. The product cost $25. It has been useful in many ways as I don't have to worry about cables or finding an outlet to charge my phone. I can charge it while on the go or when I'm working on my desk.
The benefits of this wireless charger include:
1. Convenient
2. Fast charging
3. No cables required
4. Portable
Therefore, we can calculate the value of this product using the formula of value which is
Value = Benefits/Cost.
So, the value of this product can be determined as follows:
Value = Benefits/Cost = (Convenient + Fast charging + No cables required + Portable)/$25
= (4)/$25
= 0.16
The result obtained is 0.16.
To know more about Benefits visit :
brainly.com/question/32823250
#SPJ11
Consider the market for foreign holidays pre-COVID 19. Outline the main factors that would shift the demand and supply curves in this market and the factors that would affect the shape of the curv
The demand and supply curves in the market for foreign holidays pre-COVID-19 can be influenced by various factors. Demand can be shifted by factors such as changes in consumer income, travel preferences, exchange rates, and travel restrictions.
Supply can be affected by factors like changes in costs of transportation, accommodations, and local regulations. The shape of the curves can be influenced by price elasticity of demand and supply, economies of scale in the travel industry, and the level of competition among travel providers.
Demand Factors: Changes in consumer income can shift the demand curve. If incomes rise, people may have more disposable income for travel, increasing demand. Conversely, during an economic downturn, demand may decrease. Travel preferences, such as preferences for specific destinations or types of holidays, can also shift the demand curve. Exchange rates play a crucial role, as a strong domestic currency can make foreign holidays more expensive and reduce demand. Travel restrictions, including visa requirements or geopolitical factors, can also impact demand.
Supply Factors: Changes in costs for transportation (e.g., fuel prices) and accommodations (e.g., hotel rates) can affect the supply curve. If costs increase, suppliers may offer fewer holiday packages or increase prices, shifting the supply curve. Local regulations, such as safety or environmental regulations, can also impact the supply of foreign holidays.
Shape of the Curves: The price elasticity of demand and supply can affect the shape of the curves. If demand is elastic (responsive to price changes), a small change in price can lead to a proportionally larger change in quantity demanded, resulting in a flatter demand curve. The shape of the supply curve can be influenced by economies of scale in the travel industry. If larger quantities of holidays can be produced at lower average costs, the supply curve may be steeper. Additionally, the level of competition among travel providers can impact the shape of both the demand and supply curves.
Learn more about supply and demand here: brainly.com/question/32830463
#SPJ11
The production possibilities curve is:
Select one:
O a. a graph that shows the combinations of output that are most profitable to produce
O b. a curve that shows the quantity of output that will be offered for sale and their variours prices
O c. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology
Od a graph that shows various combinations of resources that can be used to produce a given level of output
The production possibilities curve is option c. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
The production possibilities curve illustrates the different combinations of goods and services that an economy can produce using its available resources and technology. It shows the trade-offs and opportunity costs that arise from allocating resources to produce one good or service over another. The curve demonstrates the maximum output an economy can achieve given its constraints.
Therefore, the correct answer is option c i.e. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
Learn more about production possibilities curve at https://brainly.com/question/33789584
#SPJ11
21) As an alternative to inflation targeting, consider the
possibility of nominal income targeting. (In depth analysis of the
topic)
Nominal income targeting is an alternative approach to monetary policy that focuses on stabilizing the growth rate of nominal income. It involves targeting a specific rate of growth for total income in the economy, rather than focusing on inflation alone.
Here's an in-depth analysis of the topic:
1. Nominal income refers to the total amount of income earned in an economy, without adjusting for inflation. It includes wages, salaries, profits, rents, and other forms of income.
2. Inflation is the rate at which the general price level of goods and services is increasing, eroding the purchasing power of money. It is typically measured by the consumer price index (CPI) or the producer price index (PPI).
3. Inflation targeting is a monetary policy framework that aims to maintain a specific target rate of inflation. Central banks set an inflation target and use interest rates or other tools to control inflation within that target range.
4. Nominal income targeting, on the other hand, focuses on stabilizing the growth rate of total income in the economy. It aims to ensure that incomes are growing at a steady pace, which can have positive effects on consumption, investment, and economic stability.
5. By targeting nominal income growth, central banks can take into account both changes in prices and changes in real economic activity. This approach recognizes that changes in nominal income can be influenced by factors other than inflation, such as changes in productivity, labor market conditions, and aggregate demand.
6. Nominal income targeting can help mitigate the negative effects of inflation and provide a more comprehensive framework for monetary policy. It can help stabilize the economy by promoting stable income growth and reducing the risk of both inflationary and deflationary pressures.
7. However, there are challenges and trade-offs associated with implementing nominal income targeting. It requires accurate and timely data on income growth, which can be difficult to measure. Additionally, it may be more complex to communicate and understand compared to inflation targeting.
In conclusion, nominal income targeting is an alternative approach to monetary policy that focuses on stabilizing the growth rate of total income in the economy. It offers a broader perspective than inflation targeting alone, taking into account factors other than inflation that can affect economic stability. However, it also comes with challenges and trade-offs that need to be carefully considered.
learn more about Nominal income on :
https://brainly.com/question/19425399
#SPJ11
Nominal income targeting is an alternative approach to inflation targeting. It focuses on stabilizing the growth rate of total income in the economy to ensure stable economic activity. This approach recognizes the direct impact of income on economic welfare and can be implemented through monetary or fiscal policy measures.
An alternative to inflation targeting is nominal income targeting. Instead of focusing on controlling inflation, nominal income targeting aims to stabilize the growth rate of total income in the economy. This approach believes that fluctuations in income have a more direct impact on economic welfare compared to fluctuations in prices.
Nominal income refers to the total income earned by individuals and businesses before adjusting for inflation. The goal of nominal income targeting is to ensure that the growth rate of nominal income remains stable over time.
By targeting nominal income, policymakers aim to stabilize the overall level of economic activity. This approach is based on the belief that changes in income directly affect consumption, investment, and savings decisions, which in turn impact economic growth.
Nominal income targeting can be implemented in several ways. One approach is through monetary policy, where central banks adjust interest rates or money supply to maintain stable growth in nominal income. Another approach is through fiscal policy, where government spending and taxation policies are used to stabilize income growth.
For example, during an economic downturn, if nominal income growth is slowing down, policymakers may implement expansionary measures such as lowering interest rates or increasing government spending to stimulate economic activity and boost income growth.
Learn more about economy from the given link:
https://brainly.com/question/28210218
#SPJ11
which company is best to invest from NIKE and ADIDAS on the
basis of Gross Profit margin ratio and a current ratio and
inventory turnover ratio of 2021 data
Without specific data on the financial ratios of Nike and Adidas for 2021, it is not possible to determine which company is the better investment option based on the Gross Profit margin ratio.
The Gross Profit margin ratio, current ratio, and inventory turnover ratio are important financial indicators that provide insights into a company's profitability, liquidity, and inventory management efficiency, respectively.
To make an informed investment decision, it is crucial to compare these ratios between Nike and Adidas for 2021. The Gross Profit margin ratio indicates the profitability of each company, with a higher ratio generally being more favorable. The current ratio reflects the ability to meet short-term obligations, and a higher ratio suggests better liquidity. The inventory turnover ratio measures how efficiently a company manages its inventory, with a higher ratio indicating better inventory management.
By comparing these ratios for Nike and Adidas, investors can assess which company demonstrates stronger financial performance. However, without the specific data for these ratios in 2021, it is not possible to determine which company is the better investment option. Investors should conduct a detailed analysis of the companies' financial statements and consider other relevant factors before making an investment decision.
Learn more about financial here:
https://brainly.in/question/6768303
#SPJ11
In the long run, which plan has the higher payout? plan a payout p(payout) $0 0.4 $80,000 0.18 $90,000 0.42 plan b payout p(payout) $0 0.47 $15,000 0.14 $60,000 0.39
In the long run, Plan A has the higher payout compared to Plan B.
The higher payout in the long run, we need to calculate the expected value for each plan. The expected value is obtained by multiplying each possible payout by its corresponding probability and summing them up. For Plan A, the expected value can be calculated as:
Expected value of Plan A = $0 * 0.4 + $80,000 * 0.18 + $90,000 * 0.42 = $0 + $14,400 + $37,800 = $52,200.
For Plan B, the expected value can be calculated as:
Expected value of Plan B = $0 * 0.47 + $15,000 * 0.14 + $60,000 * 0.39 = $0 + $2,100 + $23,400 = $25,500.
Comparing the expected values, we find that the expected payout for Plan A is $52,200, while the expected payout for Plan B is $25,500. Therefore, in the long run, Plan A has the higher payout compared to Plan B.
Learn more about probability : brainly.com/question/31828911
#SPJ11
To determine which plan has the higher payout in the long run, calculate the expected value for both plans, which is the sum of each possible payout multiplied by the probability of that payout occurring, and compare the totals.
Explanation:The subject of your question is related to expected values in probability. To determine the plan with the higher payout, first, calculate the expected value for both plans. The expected value is obtained by multiplying each possible payout by the probability of that payout occurring, and then adding up these values.
For Plan A, the expected payout would be: (0*0.4)+(80000*0.18)+(90000*0.42)
And for Plan B, it would be: (0*0.47)+(15000*0.14)+(60000*0.39)
After calculating these sums, compare the totals to determine which plan has a higher expected payout in the long run.
Learn more about Expected Value here:https://brainly.com/question/37190983
#SPJ2
What are the advantages and disadvantages of using a subsidiary rather than a joint venture for a firm interested in manufacturing abroad
It's important to note that the choice between a subsidiary and a joint venture depends on various factors, such as the firm's resources, objectives, and risk tolerance
When considering manufacturing abroad, firms have two options: using a subsidiary or a joint venture. Let's explore the advantages and disadvantages of using a subsidiary.
Advantages of using a subsidiary:
1. Full control: The firm has complete control over the operations, strategies, and decision-making process of the subsidiary.
2. Market penetration: Establishing a subsidiary allows the firm to penetrate the foreign market and build a strong local presence.
3. Flexibility: The firm can easily adapt to local market conditions, regulations, and cultural nuances, thus enhancing its competitiveness.
4. Knowledge transfer: The subsidiary can facilitate knowledge and technology transfer between the parent company and the local market.
Disadvantages of using a subsidiary:
1. High cost: Establishing and maintaining a subsidiary requires significant financial investments in infrastructure, personnel, and operations.
2. Increased risk: The firm bears the full risk and liability associated with the subsidiary's activities, including legal and financial risks.
3. Local resistance: In some cases, local communities or governments may resist the presence of foreign subsidiaries, resulting in potential challenges and obstacles.
It's important to note that the choice between a subsidiary and a joint venture depends on various factors, such as the firm's resources, objectives, and risk tolerance. Considering these advantages and disadvantages will help the firm make an informed decision.
Learn more about joint venture
https://brainly.com/question/30154434
#SPJ11
After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sales will be constant over the four-year life of the project. Furthermore, other companies are likely to offer competing products, so the assumption that the sales price will remain constant is also likely to be optimistic. Finally, as production ramps up, you anticipate lower per unit production costs resulting from economies of scale. Therefore, you decide to redo the projections under the following assumptions: Sales of 50,000 units in year 1 increasing by 52,000 units per year over the life of the project, a year 1 sales price of $ 260 /unit, decreasing by 11 % annually and a year 1 cost of $ 120 /unit decreasing by 21% annually. In addition, new tax laws allow you to depreciate the equipment, costing $ 7.5 million over three rather than five years using straight-line depreciation.
a. Keeping the underlying assumptions in Table 1 ( ) that research and development expenditures total $ 15 million in year 0 and selling, general, and administrative expenses are $ 2.8 million per year, recalculate unlevered net income. (That is, reproduce Table 1 under the new assumptions given above. Note that we are ignoring cannibalization and lost rent.)
b. Recalculate unlevered net income assuming, in addition, that each year 20 % of sales comes from customers who would have purchased an existing Cisco router for $ 100 /unit and that this router costs $ 60 /unit to manufacture.
The answers are:
1. Sales:
Year 1 sales: 50,000 units
Year 2 sales: 102,000 units
Year 3 sales: 154,000 units
Year 4 sales: 206,000 units
2. Sales Price:
Year 1 sales price: $260 per unit
Year 2 sales price: $231.40 per unit
Year 3 sales price: $205.84 per unit
Year 4 sales price: $182.99 per unit
3. Cost:
Year 1 cost: $120 per unit
Year 2 cost: $94.80 per unit
Year 3 cost: $74.95 per unit
Year 4 cost: $59.20 per unit
4. Depreciation: $2.5 million.
5. Research and development expenditures: $15 million in year 0.
6. Selling, general, and administrative expenses: $2.8 million per year.
a. To recalculate the unlevered net income, we need to consider the new assumptions provided in the question.
1. Sales: In year 1, the sales volume is 50,000 units, increasing by 52,000 units per year over the project's lifespan. So we have:
Year 1: 50,000 units
Year 2: 50,000 + 52,000 = 102,000 units
Year 3: 102,000 + 52,000 = 154,000 units
Year 4: 154,000 + 52,000 = 206,000 units
2. Sales price: In year 1, the sales price per unit is $260, decreasing by 11% annually. So we have:
Year 1: $260
Year 2: $260 - (11% of $260) = $231.40
Year 3: $231.40 - (11% of $231.40) = $205.73
Year 4: $205.73 - (11% of $205.73) = $182.94
3. Cost per unit: In year 1, the cost per unit is $120, decreasing by 21% annually. So we have:
Year 1: $120
Year 2: $120 - (21% of $120) = $94.80
Year 3: $94.80 - (21% of $94.80) = $74.93
Year 4: $74.93 - (21% of $74.93) = $59.09
4. Depreciation: The equipment cost is $7.5 million and will be depreciated over three years using straight-line depreciation. So the annual depreciation expense is $7.5 million divided by 3, which equals $2.5 million.
5. Research and development expenditures: They total $15 million in year 0.
6. Selling, general, and administrative expenses: They are $2.8 million per year.
To calculate the unlevered net income, we need to subtract the total expenses from the total revenues. The total revenues can be calculated by multiplying the sales volume by the sales price per unit. The total expenses include the cost of goods sold (cost per unit multiplied by the sales volume), the research and development expenditures, and the selling, general, and administrative expenses.
b. To recalculate the unlevered net income with the additional assumption that 20% of sales come from customers who would have purchased an existing Cisco router, we need to consider the following:
1. Sales from customers who would have purchased an existing Cisco router: This accounts for 20% of the total sales volume. Since the sales price of the Cisco router is $100 per unit and the cost to manufacture it is $60 per unit, we need to subtract the cost of goods sold and the manufacturing cost from the sales revenue to calculate the additional contribution to the net income.
Finally, we can calculate the new unlevered net income by subtracting the total expenses (including the additional contribution from the sales of Cisco routers) from the total revenues (including the additional sales revenue from the Cisco routers).
Learn more about administrative expenses from the given link:
https://brainly.com/question/32075364
#SPJ11
Let C(x) = 11x + 6000 be the cost function and R(x) = 16x be the revenue function
depending on the quantity of a product. (Hint: Ex in P. 6 of Ch 1.3 in LN).
a. Find the unit cost of the product.
b. Find the fixed cost of the product.
c. Find the profit function of the product.
d. Find the break even point of the product.
The unit cost is (11x + 6000)/x, the fixed cost is $6000, the profit function is 5x - 6000, and the break-even point is at 1200 units.
a. The unit cost of the product can be found by dividing the cost function C(x) by the quantity x:
Unit Cost = C(x)/x = (11x + 6000)/x
b. The fixed cost of the product is the cost when the quantity is zero, which is the value of the constant term in the cost function:
Fixed Cost = $6000
c. The profit function is obtained by subtracting the cost function C(x) from the revenue function R(x):
Profit = R(x) - C(x) = 16x - (11x + 6000) = 5x - 6000
d. The break-even point is the quantity at which the revenue equals the cost, or when the profit is zero. We can set the profit function equal to zero and solve for x:
5x - 6000 = 0
5x = 6000
x = 1200
To know more about break-even point
https://brainly.com/question/32507413
#SPJ11
Construct a decision-tree with expected value in choosing the best alternative for enhancing the poor quality of road network. The feasible alternatives that you will be using in decision-tree are (a) extra drop-off and pick up areas (b) severe implementation of fare matrix and (c) straightforwardness on budgets given for road projects
The decision-tree for enhancing the poor quality of road network:
1. Extra drop-off and pick-up areas: Provides convenience but requires additional space and may not address underlying road quality issues.
2. of fare matrix: Can generate revenue for road improvements but might lead to decreased ridership and public dissatisfaction.
3. Straightforwardness on budget for road projects: Ensures proper allocation of funds but may not directly address road quality if mismanagement occurs.
To enhance the poor quality of the road network, three feasible alternatives are considered: extra drop-off and pick-up areas, severe implementation of fare matrix, and straightforwardness on budgets for road projects.
Extra drop-off and pick-up areas can improve convenience for passengers, but it might not directly tackle the root cause of poor road quality. This alternative requires additional space, which may not always be feasible.
Severe implementation of fare matrix can generate revenue that can be used for road improvements. However, it may lead to decreased ridership if fares become too expensive, and public dissatisfaction might arise.
Straightforwardness on budgets for road projects ensures that funds are allocated properly. However, if mismanagement occurs, the allocated budgets may not directly address the road quality issues.
A decision-tree analysis with expected values can be constructed, assigning probabilities and values to the different outcomes. This analysis would provide a more comprehensive evaluation of the alternatives and help determine the best course of action to enhance the poor quality of the road network.
Learn more about budget here:
https://brainly.com/question/31952035
#SPJ11
(a) Extra drop-off and (b) Severe implementation of (c) Straightforwardness on
pick-up areas fare matrix budgets for road projects
| | |
[Outcome 1] [Outcome 2] [Outcome 3]
| | |
Probability 1 Probability 2 Probability 3
| | |
(Value 1.1) (Value 2.1) (Value 3.1)
| | |
[Outcome 1.1] [Outcome 2.1] [Outcome 3.1]
| | |
Probability 1.1 Probability 2.1 Probability 3.1
| | |
(Value 1.1.1) (Value 2.1.1) (Value 3.1.1)
| | |
[Final Outcome] [Final Outcome] [Final Outcome]
Start
|
[Poor quality]
|
------------------------------------
| |
To construct a decision tree for enhancing the poor quality of road network, we will consider the feasible alternatives: (a) extra drop-off and pick-up areas, (b) severe implementation of fare matrix, and (c) straightforwardness on budget given for road projects.
We will evaluate these alternatives based on their expected value, which represents the potential outcomes and their probabilities. Here is a simplified example of how the decision tree might look:
In this decision tree, we start with the initial problem of poor road quality. The first-level alternatives (a), (b), and (c) represent the possible strategies to address this issue. Each alternative leads to potential outcomes (Outcome 1, Outcome 2, and Outcome 3) with their respective probabilities of occurrence (Probability 1, Probability 2, and Probability 3).
Each outcome further branches out to represent more specific outcomes (Outcome 1.1, Outcome 2.1, Outcome 3.1), with their associated probabilities (Probability 1.1, Probability 2.1, Probability 3.1). Finally, each specific outcome is assigned a value (Value 1.1.1, Value 2.1.1, Value 3.1.1) that reflects the expected benefits or costs.
Ultimately, the decision tree leads to the final outcomes (Final Outcome) associated with each alternative, considering all the probabilities and values along the path. By calculating the expected value at each decision point and considering the final outcomes, the decision tree can assist in identifying the best alternative with the highest expected value for enhancing the poor quality of the road network.
Learn more about budget here:
https://brainly.com/question/31952035
#SPJ11
You bought a call option on euros with a strike price of $1.70/euro. The option premium is 0.02 USD per unit. Which spot price make you break-even if you choose to exercise the option before maturity? (write number only)
You bought a put option on euros with a strike price of $1.70/£. The option premium is 0.02 USD per unit. Which spot price make you break-even if you choose to exercise the option before maturity? (write number only, round up to 2 decimal numbers)
The break-even spot price for the call option is $1.72 per euro. The break-even spot price for the put option is $1.68 per euro.
Call option
The strike price is the price at which the holder of an option can purchase or sell the underlying asset if he chooses to exercise the option. In this case, the strike price of the call option is $1.70 per euro. This means that the holder of the option can buy euros at this price if he chooses to exercise the option. The option premium is the price that the holder of an option pays to the writer of the option for the right to purchase or sell the underlying asset. The option premium for the call option is 0.02 USD per unit. To break even when exercising the option, the holder must make a profit equal to the option premium. To break even, the holder of the call option must exercise it at a price above the strike price by an amount equal to the option premium. Thus, the break-even point can be calculated by adding the strike price and the option premium. $1.70 + $0.02 = $1.72 per euro. Therefore, if the spot price is $1.72 per euro, the holder of the call option will break even if he exercises the option before maturity.
Put option
The strike price is the price at which the holder of an option can purchase or sell the underlying asset if he chooses to exercise the option. In this case, the strike price of the put option is $1.70 per euro. This means that the holder of the option can sell euros at this price if he chooses to exercise the option. The option premium is the price that the holder of an option pays to the writer of the option for the right to purchase or sell the underlying asset. The option premium for the put option is 0.02 USD per unit. To break even when exercising the option, the holder must make a profit equal to the option premium. To break even, the holder of the put option must exercise it at a price below the strike price by an amount equal to the option premium. Thus, the break-even point can be calculated by subtracting the option premium from the strike price. $1.70 - $0.02 = $1.68 per euro. Therefore, if the spot price is $1.68 per euro, the holder of the put option will break even if he exercises the option before maturity.
Learn more about The strike price: https://brainly.com/question/15682316
#SPJ11
The keynesian model argues that prices are sticky. one reason supporting this argument is that?
The Keynesian model argues that prices are sticky, meaning that they do not adjust quickly to changes in supply and demand. One reason supporting this argument is the presence of menu costs.
Menu costs refer to the costs associated with changing prices, such as printing new price lists, updating electronic systems, and notifying customers. These costs can be significant, especially for businesses with a large number of products or services.
As a result, firms may be hesitant to change prices frequently, even in response to changes in demand or production costs. This leads to price stickiness in the short run, as firms may prefer to absorb temporary shocks rather than incurring the costs of adjusting prices.
The stickiness of prices can lead to market inefficiencies, as prices do not fully reflect changes in supply and demand conditions. This lack of flexibility in price adjustments can affect the overall functioning of the economy.
In summary, according to the Keynesian model, prices are sticky due to menu costs, which discourage frequent price adjustments. This stickiness can lead to market inefficiencies as prices fail to fully reflect changes in supply and demand conditions, impacting the functioning of the economy.
Learn more about Keynesian
https://brainly.com/question/32966738
#SPJ11
Is it possible for the price of apples to decrease if the supply of apples has decreased due to a drought? Explain with the help of demand and supply graphs.
Assume an increase in the demand for sugar has cause the government, for health reasons, to increase the tax on sugar manufacturers. Explain together with demand and supply graphs the effect on the price and quantity in the sugar market. Hint: address all possibilities in your answe
If the price of the apples fall down due to the decrease in the supply then the graph curve will be downwards and the it would move towards the left side from the origin. If the demand of sugar raises then the graph curve will move upwards and moves towards the origin.
The supply and demand graph shows the graphical representation of the price, supply and demand of the product. If the demand and supply is constant then the product will be in equilibrium state of the graph. The price of any product depends the supply and demand of the product. If the supply is more then the demand will be less and if the supply is less then the demand is more. The same thing happens with the price of the product price if the price increases then the demand decreases and if the price reduces then the demand will increase.
The demand, supply and price of the product many also depend upon many other factors such as external, internal factors the external factors are by the political, social, economical and legal practices that is followed in the country and also the trends and choice of an individual changes the factors for a product.
To know more about the demand, price and supply of a product follow the link below:
https://brainly.com/question/29529362
#SPJ4