The delta approach to computing Value at Risk (VaR) would underestimate your risk in this scenario.
Delta measures the sensitivity of an option's price to changes in the underlying stock price. It represents the change in the option price for a one-unit change in the stock price. Delta values range between 0 and 1 for call options and between 0 and -1 for put options.
In the given scenario, you are long an option that promises to pay the square of the stock price in three months (S^2 + 3 months). This implies that the option's payoff is dependent on the square of the stock price, which introduces non-linear behavior.
The delta approach assumes a linear relationship between the option price and the stock price. Since the option's payoff is non-linear (based on the square of the stock price), the delta measure may not accurately capture the risk associated with the option.
As a result, the delta approach would underestimate your risk because it fails to consider the non-linear relationship between the option price and the stock price. To accurately assess the risk associated with this option, alternative approaches like higher-order Greeks or scenario-based simulations may be more appropriate.
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Provide two examples that illustrate how time consuming it can be to undo
ID theft damage.
Identity theft can cause substantial harm to a person's financial reputation, and it may take months or years to rectify. Identity theft can be costly in both time and money, and repairing the damage can take an extended period.
Here are two examples that demonstrate how time-consuming it can be to undo ID theft damage:Example 1: Restoration of Credit ReportsTo begin the restoration process, a person must notify the police and file a report with the credit bureaus. To ensure that no further theft or fraud occurs, all financial accounts and credit cards must be monitored and shut down. This process can take several months. Additionally, every time a person applies for credit, the credit bureau must be contacted to ensure that the credit report does not contain any errors. This process can take up to 7 years, depending on the severity of the identity theft.Example 2: Restoration of a Person's ReputationA victim's identity can be used to commit criminal offenses, and clearing their name requires significant effort. An innocent victim of ID theft may be subject to legal action or other legal trouble in addition to being financially harmed. It may take a long time for the victim to prove their innocence in court, particularly if the fraudster is difficult to locate.
Moreover, the financial cost of hiring a lawyer to aid in the defense may be prohibitively expensive, and it may take a long time to complete the legal process. This can cause a great deal of stress and anxiety for the victim.
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How can discussions,projects,campaigns and events support victims of xenophobia
Answer: They can raise awareness
Explanation:
Xenophobic victims have been through a lot of discrimination, hatred, physical abuse in most scenario. What most of them need in most cases are encouragement, opportunities to help them better.
Any project, campaign and event done would also raise awareness to those discriminating against them to understand that there is no need for that, most times some of this programs are for raising the awareness and when these awareness are raised they help the sanity of the environment where this xenophobic activities happen previously.
During the selling process you assess the needs of the customer by asking questions that get the customer to provide details about what they want or need these questions are typically not answered with a yes or no
During the selling process, it is important to ask questions to assess the needs of the customer in order to provide the best possible service.
Asking questions that get the customer to provide details about what they want or need is a crucial step in this process. These questions should be designed to elicit specific information and should not be answered with a simple yes or no response.
By asking open-ended questions that require the customer to provide detailed answers, you can gain a better understanding of their needs and preferences. This information can then be used to tailor your sales pitch and provide personalized recommendations that meet their specific needs.
Therefore, taking the time to assess the needs of your customers is essential for building strong relationships and driving sales success.
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Which explains how regulatory agencies compare with cabinet agencies such as the departments of commerce and the treasury?.
Which examples demonstrate common education and qualifications for Management and Entrepreneurship careers? Check all that apply.
Horatio is good at following instructions.
Marissa has strong visual design skills for arranging displays.
Letisha has a bachelor’s degree in marketing.
Quentin has many years of experience in public relations.
Devon is able to stand for long periods of time.
Lloyd is skilled at planning and managing budgets.
Answer:
3- Letisha has a bachelor’s degree in marketing.
4-Quentin has many years of experience in public relations.
6-Lloyd is skilled at planning and managing budgets.
Explanation:
The example that shows qualification are
Letisha bachelor’s degree in marketing.Quentin years of experience in PR.Lloyd skills at planning and managing budgets.What are management and enterpreneurship?Management and the entrepreneurship both terms refer to the part of administration of an organization that can be the business, the nonprofit, or even the government body.
Entrepreneurship is a process of discovering the new ways to combine resources. These resources have a greater value than the market.
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Which type of chart or graph shows data with distinct x and y values?
O a bar graph
O a scatter plot
O a line chart
O a pie chart
Answer:
A. a bar graph is the answer
3 Carla has a contract with Alexis in which Alexis is to deliver 1,000 hand-decorated beverage holders in 60 days. When Carla calls the Psychic Hotline for her weekly reading the psychic informs her that she has entered into a contract and the other party will not perform all the conditions and specifications in accordance with the agreement. Based on this knowledge, Carla may sue for an anticipatory repudiation True or False 45 True False och Under the UCC, open terms, or missing provisions in a contract, are Multiple Choice 30 entirely acceptable so long as there is evidence the parties intended to enter into a contract and other forms are sufficiently acted to provide for remedy in the case of a breach absolutely forbidden and vold the contract never acceptable because the UCC requires that of commercial actions for the sales of goods be outlined with specificity and thoroughness only lowed it the open mis quantity Every state has adopted alt for substantially all of Article 2 of the UCC 10 True or False 4 80012 True False Article 2. rules for acceptance of offers are more egid than common law rules 11 True or False 4 True False Help Save A E Suome UCC risk of loss provisions will gover the terms of a contract even if the parties have specified risk allocation in the contract 12 True or False 4 po con True False
True. Under the Uniform Commercial Code UCC, when parties have entered into a contract and one party has failed to perform all the conditions and specifications in accordance with the agreement, the other party may sue for anticipatory repudiation.
This means that the party can sue for breach of contract even before the other party has failed to fulfill their obligations. The UCC requires that commercial actions for the sale of goods be outlined with specificity and thoroughness, and in general, open terms or missing provisions in a contract are not entirely acceptable, though there may be evidence that the parties intended to enter into a contract. Furthermore, Article 2 of the UCC outlines the rules for acceptance of offers, which are more stringent than common law rules. Lastly, the UCC risk of loss provisions will govern the terms of a contract even if the parties have specified risk allocation in the contract.
UCC (Uniform Commercial Code) is a legal instrument governing and legalizing specific business contracts. It Merges regulations from various laws concerning commercial transactions. UCC is not a federal law, but a uniformly adopted state legislation.Uniform Commercial Code Article 9 provides a statutory framework that governs secured transactions--transactions that involve the granting of credit secured by personal property. Each state maintains an office for filing finance statements to publicly disclose security interests in encumbered property.
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Why very few subsistence economies exist today
Answer:
As previously mentioned,
subsistence markets are
extremely vulnerable to
external influences.
Because of this
vulnerability, these economies are
becoming more scarce around the
world. In the past, for example, large
populations of indigenous peoples lived
throughout North America.
A couple weeks ago, Alex saw her boss stealing money out of the cash register. Her boss noticed that Alex saw. Alex planned to tell one of the other managers the next day, but when she came in for work, her boss pulled her aside and told her that she should keep her mouth shut if she wanted to keep her job, because she would be blamed for the missing money if she told anyone what she saw. Alex's boss is using what unethical communication practice discussed in our lectures from this week
Answer:
The answer is "Coercion".
Explanation:
Its legislative concept of coercion between both the states was reasonably uniform: utilizing bullying and threats to force (or inhibit) individuals to do something they have and do not have a legal right to. It implies that helping a person, through threatening his security and well or those of his family or property, which we usually should not do.
The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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All the following statements are true about leadership EXCEPT Question 7 options: a) Leading in a multinational company is an even greater challenge than in a domestic one. b) Excellent leaders motivate their employees to achieve more than minimal organizational requirements. c) Leadership is influencing group members to achieve organizational goals. d) Companies can achieve success with or without good leaders.
Answer:
C
Explanation:
B
a price-weighted index consists of firm a and firm b common stocks. the price of firm a common stocks increased from $100 to $120. the price of firm b common stocks decreased from $100 to $80. what is the return on this price-weighted index?
With the price of firm a common stocks increased from $100 to $120 and the price of firm b common stocks decreased from $100 to $80 , the return of price-weighted index is 0%.
A price-weighted index is calculated by adding up the prices of each stock in the index and dividing by the number of stocks. The return on the price-weighted index is determined by comparing the current index value to the previous index value.
Let's say the price-weighted index consists of two stocks, firm A and firm B. Initially, the prices of firm A and firm B are $100 and $100, respectively, and the index value is ($100 + $100) ÷ 2 = $100.
After the changes, the price of firm A increases to $120 and the price of firm B decreases to $80. The current index value would be ($120 + $80) ÷ 2 = $100.
To determine the return on the price-weighted index, we can calculate the percentage change in the index value:
(($100 - $100) ÷ $100) x 100 = 0%
In this case, the return on the price-weighted index is 0%, indicating that the index value has not changed. This is because the price increase of firm A was offset by the price decrease of firm B.
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Company Z understands that their business is at risk. How can they use step two in the
Decision Making Process to reach their end goal of increasing sales and customer satisfaction?
Company Z can use step two in the decision-making process to achieve its ultimate goal of increasing sales and customer satisfaction by gathering the relevant information about a decision.
Step two of the decision-making process corresponds to gathering relevant information after the decision has been identified. At this stage, internal and external work is necessary, analyzing the errors and successes related to a past decision.
Therefore, it is necessary for company Z to seek information from different sources, such as the results of previous decisions, studies, market research and consultancy, to ensure greater chances of a decision being effective.
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Medicare is a government program funded by tax dollars to:
A-provide health insurance to children in a recount
B-provide health insurance to working adults
C-provide hospital insurance for those over 65
Answer: C
Explanation: Trust me
Relative to Monetarists, Keynesians would tend to argue that:
a. recessions are caused by a lack of "animal spirits."
b. the Federal Reserve is the cause of recessions.
c. the economy can recover from a recession rather quickly.
d. markets are robust and will recover quickly from an economic downturn.
e. All of the above.
Relative to Monetarists, Keynesians would tend to argue (A) that recessions are caused by a lack of "animal spirits."
Keynesians believe that fluctuations in aggregate demand, influenced by factors such as business confidence, consumer sentiment, and government spending, are the primary drivers of economic cycles. "Animal spirits" refer to the psychological and emotional factors that affect economic decision-making, leading to fluctuations in investment and spending.
Unlike Monetarists, who emphasize the role of the Federal Reserve and monetary policy in causing or alleviating recessions, Keynesians focus on the importance of fiscal policy in stabilizing the economy. They argue that during a recession, the government should increase spending and/or reduce taxes to boost aggregate demand and help the economy recover more quickly.
Keynesians also tend to be less optimistic about the economy's ability to self-correct in the short term, as they believe that markets may not always clear due to factors such as sticky prices and wages. This contrasts with the Monetarist view that markets are robust and will recover quickly from an economic downturn.
In summary, Keynesians primarily attribute recessions to a lack of "animal spirits" and emphasize the importance of fiscal policy in economic stabilization. They are less likely to agree with Monetarists about the central role of the Federal Reserve and the resilience of markets in the face of economic challenges. The correct answer is A.
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In designing a general service facility, capacity should be such that the target rate of service utilization (rho), in order to get the best general purpose design, should be
a) less than 0.6 (or 60%), so that your system would be within the zone of service with maximum possible utilization within that.
b) more than 0.6 (or 60%) so that your system would have a good utilization
c) about 0.7 (70%) so that your system would be in the zone of service with maximum possible utilization within that.
d) more than 1.0 (100%) so that the servers are fully utilized, even if the customers had to wait a little
e) between 0.9 (90%) and 1.0 (100%) so that the utilization of the system is ideal.
In designing a general service facility, capacity should be such that the target rate of service utilization (rho) is about 0.7 (70%) so that your system would be in the zone of service with maximum possible utilization within that. The correct answer is option C.
In designing a general service facility, capacity is a crucial factor that must be carefully considered. Capacity refers to the maximum amount of work that a facility can handle within a given period of time. One important metric to consider when determining capacity is the target rate of service utilization (rho), which is the percentage of time that the facility is being used to provide service.
To get the best general purpose design, the target rate of service utilization should be carefully balanced. If the target rate is too low (less than 0.6 or 60%), the facility may not be utilized efficiently, and resources may be wasted. However, if the target rate is too high (more than 0.6 or 60%), the facility may become overburdened, leading to long wait times for customers and a decrease in service quality.
Ideally, the target rate of service utilization should be around 0.7 (70%), which is the zone of service with maximum possible utilization. This means that the facility is being used efficiently without being overburdened. However, some facilities may aim for a higher target rate (between 0.9 and 1.0) to ensure that servers are fully utilized, even if this means customers have to wait a little.
In conclusion, capacity of about 0.7 (70%) will be appropriate so that your system would be in the zone of service with maximum possible utilization within that. This option allows for a balance between maintaining high utilization and avoiding excessive customer wait times.
Therefore, option C is the correct answer.
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Why would you write a complaint to a company?
Answer:
To discuss with a company about a problem you may be having with their service or product.
Explanation:
A written contract granting permission to operate
an already existing business.
Answer:
Explanation:
A written contract granting permission to operate a business to sell products and services in a prescribed way. franchise.
Which of the following is a significant factor in how willing creditors will be to
extend credit to an individual?
A. The individual's history of paying back previous credit
B. The individual's general appearance
C. The individual's family situation
D. The individual's education level
Answer:A
Explanation:
The individual's history of paying back previous credit is a significant factor in how willing creditors will be to extend credit to an individual. Thus, option A is correct.
What is Credit?The capacity to obtain products or services or take loans only with the idea that pays for them afterward is known as credit. Credit is generally given to a person for a fixed period of time that is previously decided at the time of giving money.
This means that the person makes the decision of returning depending on the flow of the social class, which means that the money received by one is given to another person and the cycle goes on.
In the money market, a person is only given the amount if that is known that the amount will be back at the desired time. Therefore, option A is the correct option.
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Hayden works with flammable chemicals in his career in a perfume factory. Based on that information, which of the following conditions might warrant his higher wage. decision making stress level supervision danger or risks
The condition that might warrant his higher wage is the danger or risks present in the workplace.
What is the condition of the workplace?The condition of the workplace present a high hazard because of the flammable chemicals that can cause serious accident
Hence, the condition that might warrant his higher wage is the danger or risks present in the workplace.
Therefore, the Option D is correct.
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Answer:
D
Explanation:
ill give every answer when im finish dont delete me
How is net pay different from gross pay? Someone please answer in at least 4 sentences explaining! Will be marking brainiest.
Employee's gross pay is their compensation before taxes, benefits, and other payroll deductions are subtracted. After all, withholdings are removed, net pay, also known as take-home pay, is the amount left over.
What are Gross pay and Net pay?The gross pay of an employee is the amount earned before taxes, benefits, and other payroll deductions are removed from their compensation. Net pay is the amount left over after all withholdings are removed.
Your net salary, often known as your take-home pay, is the amount of money you get after all deductions. The CTC is reduced by income tax, professional tax, Public Provident Fund (PPF), and other deductions. The net wage is frequently lower than the gross wage.
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pick either union or management. what was the key strategic error made by this side in the negotiations? what was the best move? based on this critique and your own personal experience in the abc-local 190 negotiations, propose a realistic strategy for this side that you feel would have resulted in a mutually satisfying solution. explain how you feel the other side would have reacted to this strategy and why
In the given scenario, let's consider the management side. A key strategic error by management: The key strategic error made by the management side in the negotiations was failing to effectively communicate the reasoning behind their proposed changes and the potential benefits it could bring to both the organization and the employees. This lack of communication created misunderstandings and resistance from the union.
Best move: The best move for the management side would have been to establish open and transparent communication channels with the union from the beginning.
This would involve actively listening to the concerns of the union, clearly articulating the organization's goals and constraints, and engaging in constructive dialogue to find common ground and mutually beneficial solutions.
Proposed realistic strategy: A realistic strategy for the management side could have been to focus on collaborative problem-solving and exploring creative alternatives. This could involve conducting joint brainstorming sessions with the union to identify areas of mutual interest, such as cost-saving measures that do not compromise the well-being and job security of the employees. By involving the union in the decision-making process and considering their input, the management side would have been more likely to achieve a mutually satisfying solution.
Expected reaction: The other side, the union, would likely have responded positively to a strategy that values their input and seeks to find solutions that address their concerns. By actively involving the union in the negotiations and demonstrating a willingness to listen and explore alternative options, the management side would have built trust and fostered a more cooperative atmosphere. This approach would increase the likelihood of the union being receptive to compromise and working together toward a mutually satisfying resolution.
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The sum of ending inventory and cost of goods sold isA.net purchases.B.gross profit.C.cost of goods availableâ (or cost of goods available forâ sale).D.beginning inventory.
The sum of ending inventory and cost of goods sold is not a standalone figure, but rather a component of the cost of goods available for sale, which is the total cost of goods available for sale during a specific period.The correct answer to the question is option C.
The cost of goods available for sale is the total cost of goods that were available for sale during a specific period. It is calculated by adding the beginning inventory to the net purchases made during the period. The sum of ending inventory and cost of goods sold, on the other hand, gives us the cost of goods available for sale.
This is because the cost of goods available for sale is either sold (cost of goods sold) or kept in inventory (ending inventory) at the end of the period.To calculate the cost of goods sold, we subtract the ending inventory from the cost of goods available for sale. And to calculate the gross profit, we subtract the cost of goods sold from the net sales.The correct answer to the question is option C.
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How are securities connected to the last Housing Bubble (it eventually burst in 2007)?
In March 2007, the United States' subprime mortgage industry collapsed due to higher-than-expected home foreclosure rates (no verifying source), with more than 25 subprime lenders declaring bankruptcy, announcing significant losses, or putting themselves up for sale.
financial instruments related to the previous housing bubble More than 25 subprime lenders filed for bankruptcy,
reported major losses, or placed themselves up for sale as the subprime mortgage sector in the United States imploded in March 2007 (no validating source).
What do you meant by Housing Bubble?One of the many asset price bubbles that periodically emerge in the market is the housing bubble (or house price bubble). A housing bubble follows the same basic structure as other asset bubbles, with two major periods. House prices first experience a period of sharp growth that is increasingly driven by speculative activity. House prices drop significantly in the second phase.
Because they are credit-fueled, involve a large number of households rather than just investors, and have a larger wealth effect than other types of financial assets, housing bubbles typically rank among the asset bubbles with the biggest impact on the real economy.
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a group of scientists studied
Answer:
Explanation:
The Business Scientist underpins excellent management and business skills with scientific knowledge, supporting evidence-led decision-making within companies and other enterprises.
what factor does not affect the demand for medical care
One factor that does not typically affect the demand for medical care is the price of medical services. In many cases, individuals prioritize their health and seek medical care regardless of the cost, especially in situations where their well-being or life is at stake.
While the price of medical services does have some influence on healthcare utilization, it is often not the sole determinant of demand for medical care.
Unlike traditional goods, where higher prices often lead to decreased demand, healthcare is a necessity that individuals prioritize for their well-being and survival.
The demand for medical care is primarily driven by factors such as the prevalence of diseases and health conditions within a population, individuals' perception of their health status, and the severity of their symptoms.
People seek medical care when they perceive a need for diagnosis, treatment, or preventive measures to maintain or improve their health.
Other factors that affect the demand for medical care include demographic factors (e.g., age, gender, and population growth), socio-economic status (including income and education), cultural beliefs and attitudes towards health and healthcare, and availability and accessibility of healthcare services.
While the cost of medical services can influence the utilization of healthcare to some extent, factors such as the urgency and severity of health conditions, medical insurance coverage, and the presence of alternative healthcare options also play significant roles in determining the demand for medical care.
Therefore, while price can be a consideration for some individuals, it is not the sole determinant of healthcare demand, and various other factors influence individuals' decisions to seek medical care.
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A company’s perpetual preferred stock has a par value of $15 million and pays a dividend rate of 7.5% per year. The company’s tax rate is 42%. If the preferred stock’s market value is $14.1 million, what is the company’s annual cost of preferred stock financing? Question 2 options: 1) 7.98% 2) 8.25% 3) 6.89% 4) 7.64% 5) 7.23%
Answer:
1) 7.98%
Explanation:
The solution to the company’s annual cost of preferred stock financing is shown below:-
The Annual cost of preferred stock financing = Preferred stock par value × Dividend rate per year ÷ Market value
= $15 million × (0.075) ÷ $14.1 million
= 7.98%
Therefore for computing the Annual cost of preferred stock financing we simply applied the above formula.
Widget Works has a cost of equity of 17.1 percent. The market risk premium is 9.2 percent and the risk-free rate is 3.3 percent. The company is acquiring a competitor, which will increase the company's beta to 1.7. What effect, if any, will the acquisition have on the firm's cost of equity capital? Decrease of 2.62 percent Increase of 2.62 percent Increase of 1.84 percent No effect Decrease of 1.84 percent
The acquisition of the competitor will have an effect on the firm's cost of equity capital.
To determine the effect, we need to consider the relationship between beta and the cost of equity capital.
The cost of equity capital is determined using the Capital Asset Pricing Model (CAPM), which is given by the formula:
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
Before the acquisition, the company's beta is not provided, so we need to calculate it based on the given information. Using the CAPM formula, we can calculate the initial beta as follows:
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
17.1% = 3.3% + Beta * 9.2%
Beta = (17.1% - 3.3%) / 9.2%
Beta ≈ 1.74
After the acquisition, the company's beta will increase to 1.7. Comparing the initial beta of 1.74 with the post-acquisition beta of 1.7, we can see that the acquisition will have no effect on the firm's cost of equity capital. Therefore, the correct answer is "No effect."
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The demand for sugar is given by P=120-2Q and the supply of sugar is given by P=30+2Q. The production of sugar generates a positive production externality equal to Q, on the local growers of blueberries because bees from the sugar farm pollinate the blueberry plants. To achieve an efficient level of trade in the sugar market:
a) a subsidy to the sugar farmers
b) a subsidy to the blueberry farmers
c) a tradeable permit for the production of blueberries
d) a tax on the sugar consumers
e) a tax on the sugar farmers
The tax, subsidy, or tradeable permit that you suggested in question 2 should be equal to :
25
40
20
30
35
The subsidy shοuld be equal tο Q, which is apprοximately 22.5. Hοwever, nοne οf the prοvided οptiοns match this value. Therefοre, nοne οf the οptiοns (25, 40, 20, 30, 35) is cοrrect in this case.
Hοw tο achieve an efficient level οf trade?Tο achieve an efficient level οf trade in the sugar market, the cοrrect οptiοn wοuld be:
a) a subsidy tο the sugar farmers.
Tο determine the value οf the subsidy, we need tο find the marginal external benefit οf the sugar prοductiοn externality, which is equal tο the marginal benefit received by the blueberry grοwers.
Given that the prοductiοn externality is equal tο Q (the quantity οf sugar prοduced), the marginal benefit received by the blueberry grοwers is alsο Q. This is because the externality is directly prοpοrtiοnal tο the quantity οf sugar prοduced.
Therefοre, tο achieve an efficient level οf trade, the subsidy tο the sugar farmers shοuld be equal tο the marginal external benefit, which is Q. Since Q represents the quantity οf sugar, we need tο find the value οf Q that satisfies the supply and demand equatiοns.
Frοm the demand equatiοn, P = 120 - 2Q, we can substitute P with 30 + 2Q (frοm the supply equatiοn) tο find the equilibrium quantity:
30 + 2Q = 120 - 2Q
4Q = 90
Q = 22.5
Sο, the subsidy shοuld be equal tο Q, which is apprοximately 22.5. Hοwever, nοne οf the prοvided οptiοns match this value. Therefοre, nοne οf the οptiοns (25, 40, 20, 30, 35) is cοrrect in this case.
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Ian is interested in purchasing bonds, but he is looking for bonds that aren’t related to the government. Which type of bonds would you suggest he purchase?
treasury bonds
municipal bonds
corporate bonds
general obligation bonds
Answer:
The principal of a Brady bond is backed by U.S. Treasury bonds that are deposited with the Federal ... A corporate bond has a 12% nominal yield. ... General Obligation Bond's credit risk:.
Explanation:
try it
Treasury bonds are the type of bonds would you suggest the purchase. Hence, option A is correct.
What is Treasury bonds?Until they complete, Treasury bonds provide a fixed rate of interest every six months. They are given out for 20 or 30 year contracts. Treasury Direct is where a person may purchase Treasury bonds from a financial institute. Additionally, a person can purchase them from a bank or broker.
Treasury bonds are among the safest assets a person can buy because they are supported by the full faith and credit of the United States Government. They often don't provide a very high return because there is so little chance that you will lose money.
Thus, option A is correct.
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