Devise a hypothetical business situation

Assignment Help Business Economics

Reference no: EM138792

Q1. a) what output will maximize profit? What is this profit?

b) Will output increase if the price rises to $4.50 to $5.25? Explain your answer.

Q2. Devise a hypothetical business situation in which buying a look back (giving the holder the right to buy or sell the underlying at the highest or lowest price it has attained over the life of the option)call option on a commodity may be a sound strategy for you. How about a down-and-out call option? The chapter deals with time, risk and options.

Reference no: EM138792

Questions Cloud

What is magnitude of the wind velocity in km/h : What is an acceleration of two falling sky divers (mass 120.0 kg including parachute) while the upward force of air resistance is equal to one-fourth of their weight.

What is the period of the motion : A car carrying a 77-kg test dummy crashed into a wall at 27m/s and is brought to rest in 0.1 s. demonstrate that the average force exerted by the seat belt on the dummy is 18,760N.

Income grow in this steady state : The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.

What is the minimum value of the acceleration : An airplane must reach a speed of 172 mi/h to take off. If the runway is 470 m long, what is the minimum value of the acceleration that would allow the airplane to take off productively.

Devise a hypothetical business situation : Devise a hypothetical business situation in which buying a look back.

Assuming the weight is evenly distributed : A jetliner can fly 5.32 hours on a full load of fuel. Without any wind it flies at the speed of 220 m/s. The plane is to make a round-trip by heading due west for a certain distance, turning around, and then heading due east for the return trip.

Impact of the shrinking world : What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.

Find out the mass of the object : A 2500-kg sport utility vehicle travelling at 92 km/h can be stopped in 0.25 s if it hits a concrete wall. Assume a 60 kg person was in the car that hit this wall. The velocity of the person equals that of the car both before and after the crash, and..

Potential entrant to pay a sunk cost : There is a potential entrant, who needs to pay a sunk cost of f to enter in this market. Firms may produce any quantity that does not exceed its capacity.

User Account

All Pages