In order to hedge against the potential price changes of wheat, the option position that will provide the best wheat hedge would be: Buy put options on wheat. (Option 3)
Buying put options on wheat allows Harvest Cereals to have the right, but not the obligation, to sell wheat at a predetermined price (the strike price) within a specified period of time (until the option's expiration date). By purchasing put options, Harvest Cereals can protect itself from potential price decreases in wheat. If the price of wheat falls below the strike price, the put options will gain value, offsetting the loss in the physical wheat purchase.
Writing (selling) put options (option 1) exposes Harvest Cereals to the risk of having to purchase wheat at a higher price if the market price drops below the strike price.
Writing straddles (option 2) involves simultaneously selling both put and call options on wheat. This strategy may not be the best choice for hedging a specific directional price risk, as it benefits from high volatility and uncertainty rather than protecting against price changes.
Writing call options (option 4) would expose Harvest Cereals to potential losses if the price of wheat rises above the strike price, as they would be obligated to sell wheat at a lower price.
Buying call options (option 5) does not provide an effective hedge against potential price decreases in wheat, as it only allows the right to buy at a predetermined price and would result in a loss if the price decreases.
Therefore, buying put options on wheat (option 3) is the most suitable option to hedge against potential price changes and protect Harvest Cereals from unfavorable price movements in their wheat imports.
The correct question is:
Harvest Cereals imports wheat as an ingredient for its product line. The current price of wheat per bushel will allow for a reasonable profit margin. But, Harvest understands that the global price of wheat changes, sometimes quite often, and is worried that the price of the next shipment due in the near future will change from its current level. Given this scenario, what option position will provide the best wheat hedge?
1. Write put options on wheat
2. Write straddles on wheat
3. Buy put options on wheat
4. Write call options on wheat
5. Buy call options on wheat
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As monopolistically competitive firms struggle to find ways to attract customers, _________. Select the two correct answers below. Select all that apply:
a) they often end up offering friendlier service, free delivery, guarantees of quality, variations on existing products, and a better shopping experience
b) they often engage in innovation and technological improvements
c) they waste resources trying to differentiate themselves
d) they strategically lower their prices to steal customers from their competitors
a) they often end up offering friendlier service, free delivery, guarantees of quality, variations on existing products, and a better shopping experience.
b) they often engage in innovation and technological improvements.
Monopolistically competitive firms often resort to offering friendlier service, free delivery, guarantees of quality, variations on existing products, and a better shopping experience. This is because they aim to differentiate themselves from their competitors and attract customers through enhanced customer service and unique offerings.
In addition, these firms frequently engage in innovation and technological improvements. By continuously developing new products, services, or improving existing ones, they can stay ahead in the market and maintain their competitive edge. Innovation allows them to offer unique features or benefits that can attract customers and differentiate themselves from other firms.
While c) wasting resources trying to differentiate themselves and d) strategically lowering their prices to steal customers from their competitors can also be strategies employed by monopolistically competitive firms, they are not the correct answers in this case. These strategies may have some drawbacks or limitations, and firms tend to focus more on a) and b) to stand out in the market and attract customers.
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if you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is:
If the inflation rate is 15 percent. The real interest rate on this bond is:22%.
Real interest rateUsing this formula
Real interest rat=Expected inflation rate+ One year yield to maturity
Let plug in the formula
Real interest rate=15%+7%
Real interest rate=22%
Therefore the inflation rate is 15 percent. The real interest rate on this bond is:22%.
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which of the following is a building block of neoclassical economics?
A. Wages and prices tend to be sticky.
B. Most unemployment is cyclical.
C. Wages and prices will adjust in a flexible manner.
D. The size of the economy is determined by aggregate demand.
C. Wages and prices will adjust in a flexible manner is a building block of neoclassical economics.
Neoclassical economics is based on the principles of market equilibrium and rational decision-making. One of its key building blocks is the belief that wages and prices will adjust in a flexible manner to achieve equilibrium in the market. According to neoclassical theory, in a competitive market, supply and demand forces will interact to determine equilibrium prices and wages. Any imbalances will create incentives for adjustments, leading to the restoration of equilibrium. This flexibility in wage and price adjustments is considered essential for market efficiency and the allocation of resources.
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given breakeven sales in units of 31,000 and a unit contribution margin of $10, how many units must be sold to reach a target operating income of 15000?
The given breakeven sales in units of 31,000 and a unit contribution margin of $10. 31,500 units must be sold to reach a target operating income of $15,000.
To calculate the number of units that must be sold to reach a target operating income of $15,000, we need to use the formula:
(Target Operating Income + Fixed Costs) / Unit Contribution Margin = Number of Units
In this case, we know the target operating income is $15,000 and the unit contribution margin is $10. However, we are not given information about fixed costs. Therefore, we cannot solve for the number of units.
However, we can use the given information about breakeven sales in units of 31,000. Breakeven sales occur when total revenue equals total costs, which means that there is no profit or loss. In other words, at breakeven sales, the target operating income is zero.
Therefore, we can use the breakeven sales information to find the fixed costs:
Fixed Costs = (31,000 units x $10/unit contribution margin)
Fixed Costs = $310,000
Now we have all the information needed to calculate the number of units required to reach a target operating income of $15,000:
($15,000 + $310,000) / $10 = 31,500 units
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In cell H4, calculate the donation amount by multiplying the Streaming Revenues by the percentage in cell I1, using absolute references as needed
Answer:
=G4*$I$1
Explanation:
Answer:
=Table1[Streaming Revenues]-Table1[Donation]
Explanation:
Ahmed wants to open a small business selling custom bikes, and is looking at ways of raising money. He owns his own house and is considering acquiring a second mortgage. He is also speaking to his bank about a loan and is looking at crowd-funding sites, as he thinks his product is innovative and could attract investors.
- Assess a mortgage, a loan and crowd-funding as sources of finance for Ahmed.
Explanation:
Mortgages (Pros & Cons)
Defintion-
These are long-term loans, normally around 25 years, that are secured against specific asset, for example a building
Interest will be payable on the mortgage
Pros-
Large amounts of finance can be raise and repaid over a prolonged period of time
Ownership or control is not lost
Cons-
Interest is charged on the amount borrowed
Interest rates can fluctuate
Often secured against an asset which can be seized if repayments are missed
Interest has to be paid regardless of whether a profit is being made
Not suitable for small amounts or as a short-term source of finance .
If a person wants to work from home in the Business, Management and Administrative careers, what is required?
O a cubicle to keep the person on task
0 a private office to protect confidential information
proper technology to keep the person connected
proper travel arrangements to meet with customers
Answer:
proper technology to keep the person connected
Explanation:
Working from home entails accessing the office remotely. The employee gets connected to the company's private network while at home. A good internet connection is required for the employee to be connected to the office systems while at home.
Apart from connectivity, they may need a virtual private network application to access the company's private network. The employee's home computer will need configuration to access office applications. Proper technology is, therefore, required to keep an employee connected.
Answer:
C) proper technology to keep the person connected
Explanation:
What are consumer surplus and producer surplus? pedro wants to buy a new car. the most he is willing to pay is $21,000. if he finds a car for $18,000, what will his consumer surplus be?
Consumer surplus and producer surplus are economic terms that describe the difference between what a consumer is willing to pay for a good or service and the price they actually pay. Pedro's consumer surplus would be $3,000.
Consumer surplus is a measure of the benefit or surplus that a consumer receives from purchasing a good or service. Producer surplus is the difference between the price at which a producer is willing to sell a good or service and the price they actually receive.
Pedro's reservation price for a new car is $21,000, but he finds a car for $18,000. Therefore, his consumer surplus can be calculated as follows:
Consumer surplus is a measure of the benefit or surplus that a consumer receives from purchasing a good or service.
Consumer surplus = Reservation price - Actual price
Consumer surplus = $21,000 - $18,000
Consumer surplus = $3,000
So, Pedro's consumer surplus in this scenario is $3,000.
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what's the difference between Utility and Marginal Unility?
Answer:
One is large the other is small
Explanation:
Working capital management focuses on making sure that an organization has sufficient resources to operate?
Working capital management focuses on making sure that an organization has sufficient resources to operate over the next year. Working capital management is a business strategy designed to make sure that an organization operates efficiently by monitoring and utilizing its current assets and liabilities to their most effective use.
Working capital management requires monitoring a company's assets and liabilities to maintain sufficient cash flow to meet its short-term operating expenses and short-term debt obligations. Working capital management involves tracking various ratios including working capital ratio, collection ratio, and inventory ratio.
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company analysis is only concerned with how a company has performed in the past.
company analysis is only concerned with how a company has performed in the past- True
Company analysisThe process of examining a firm's profitability, profile, and goods or services is referred to as company analysis. It is sometimes referred to as "fundamental analysis," and it is commonly employed by investors. It includes fundamental company information such as the mission statement, goals, and values.
In business, there are several types of analyses, including sales analysis, operational analysis, investment analysis, SWOT analysis, and so on. All of these things contribute to the shared aim of running a successful business.
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The situation analysis section of a traditional top-down marketing plan includes information about the _____.
It should be noted that the situation analysis section of a traditional top-down marketing plan contains the marketing objectives.
What is situation analysis?It should be noted that situation analysis means the methods that can be used to analyze the internal and external environment of an organization.
The situation analysis section of a traditional top-down marketing plan contains the marketing objectives.
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Any voluntary disenrollment occurring within three (3) months of the membership effective date is considered a rapid disenrollment and will result in a chargeback of the full commission paid.a) trueb) false
Answer: true
Explanation:
The reports available on Aetna's producers world are ones Medicare business book, month or year of commission report and licensing reports.
The requirements necessary to have ready-to-sell Aetna Medicare status are
Aetna Individual Medicare certification for the products one intend to sell, active contract through Medicare Producer Contracting site, having a licensed in the state one wants to sell and also passed ng a check done background.
Any voluntary disenrollment occurring within three (3) months of the membership effective date is considered a rapid disenrollment and will result in a chargeback of the full commission paid is true.
a $124 petty cash fund has cash of $17 and receipts of $109. the journal entry to replenish the account would include a credit to cash over and short for $2. credit to petty cash for $109. debit to cash for $109. credit to cash for $109.
The journal entry to replenish the account would include a credit to cash over and short for $2.
Is cash over and short a debit or credit?This cash deficit is recorded as a credit to the petty cash or cash account and a debit to the cash over and short account (which is a cost) (which is an asset reduction).Within a company's general ledger, an income statement account called Cash Short and Over is where shortages or surpluses of cash are reported.A company's net income and cash balance in the general ledger will both be affected if it has a cash short position, which is more prevalent. A cash over situation will raise both a company's general ledger cash balance and its net income.To learn more about general ledger refer,
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Describe the multinational structure and international presence of BHP and focusing on their physical presence and forms of entry, as well as their equity market listing(s).
The recent delisting from the London Stock Exchange (LSE) has changed the company standing on the ASX in terms of stock market presence. Explain how.
BHP has a multinational structure and an international presence. The firm has a large workforce and operates in a variety of locations worldwide, with the majority of its operations located in Australia and the Americas. BHP has used a variety of entry strategies to enter different markets, including acquisitions, joint ventures, and greenfield investment. BHP's equity market listing is dual-listed, and it is now only listed on the ASX following its delisting from the LSE.
BHP, one of the world's leading resource companies, has an international presence, a multinational structure, and operates across the world. It has a workforce of 80,000+ employees who work in multiple countries. BHP has an extensive physical presence worldwide, with the majority of its operations located in Australia and the Americas. BHP's global operations are divided into five groups: Petroleum, Minerals Australia, Minerals Americas, Steel, and Corporate. BHP has a diverse portfolio of assets, including minerals, oil, and gas, and it operates in a variety of locations. It's among the world's largest mining companies and has a global customer base.
BHP has a long history of international expansion and has used a variety of entry strategies to enter various markets. For example, in the case of its entry into the US, BHP used acquisitions. BHP's joint venture partnerships with other firms have aided its entry into several markets, such as those in Asia. In contrast, the company's entry into China was largely through greenfield investment, as it is prohibited from acquiring a majority stake in local companies.
BHP has a unique equity market listing in that it is dual-listed. BHP is listed on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE). In November 2018, BHP's LSE-listed shares were delisted, leaving only the company's ASX listing, following a successful buyback. It is possible to purchase BHP shares on other stock exchanges, such as the Johannesburg Stock Exchange.
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Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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If marginal utility becomes negative, then total utility ______ as an extra unit of a good is consumed.
If marginal utility becomes negative, then total utility diminishing as an extra unit of a good is consumed.
In economics, the application is the pride or advantage derived through eating a product. The marginal application of a great or provider describes how a great deal of pride or delight is won or lost via purchasers as a result of the increase or decrease in consumption by one unit.
The extra pride or benefit (application) that a patron derives from buying an additional unit of a commodity or service. Marginal considerations are issues that are subject to a moderate boom or diminution of the inventory of whatever we possess or are considering. any other way to think of the time period marginal is the fee or advantage of the subsequent unit used or consumed, for instance, the benefit which you might get from ingesting a bit of chocolate.
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What do behaviorist and cognitivist theories have in common?
a. Praise is an important aspect of learning in both of them.
b. They both rely on a simple stimulus-response system.
c. Repetition is an important aspect of learning in both of them.
d. They both accept that the mind has a conscious role in learning.
The major difference between the information-based model and the content-based model is the
Answer:
The major difference between the information-based model and the content-based model is the way they make recommendations.
In the information-based model, recommendations are made based on information about the user's preferences, such as their past behavior or explicit feedback. This model relies on data about the user and their interactions with the system to make recommendations.
On the other hand, in the content-based model, recommendations are made based on the characteristics of the items being recommended. This model relies on the attributes or features of the items, such as genre or author, to make recommendations. The system analyzes the user's past behavior and tries to identify patterns in the types of items they have interacted with positively, and then recommends other items with similar attributes or features.
Explanation:
Overall, the information-based model is more user-focused, while the content-based model is more item-focused. Both models have their strengths and weaknesses, and the choice of which model to use may depend on the specific context and goals of the recommendation system.
Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.
Spartan Corporation, a U.S. corporation, reported $5 million of pretax income from its business operations in Spartania, which were conducted through a foreign branch. Spartania taxes branch income at 25 percent, and the United States taxes corporate income at 35 percent.
If the United States provided no mechanism for mitigating double taxation, what would be the total tax (U.S. and foreign) on the $5 million of branch profits?
Answer: $3million
Explanation:
Step 1: Calculate the tax in Spartania.
Spartania taxes branch income at 25 percent.
Tax in Spartania = $5 million * 25% = $1.25 million
Step 2: Calculate the tax in the United States.
The United States taxes corporate income at 35 percent.
Tax in the United States = $5 million * 35% = $1.75 million
Step 3: Add both taxes to find the total tax.
Total Tax = Tax in Spartania + Tax in the United States
Total Tax = $1.25 million + $1.75 million = $3 million
So, if the United States provided no mechanism for mitigating double taxation, the total tax (U.S. and foreign) on the $5 million of branch profits would be $3 million.
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What’s the difference between a brand name and a private title
Answer:
Private brands tend to be cheaper than name brand goods
Explanation:
Macroeconomics is the branch of economics that focuses on:
A. comparing the lifestyles of poor and wealthy citizens.
B. economic principles affecting entire countries.
C. helping people find jobs when they're unemployed.
D. financial problems affecting individual families.
Answer:
B. economic principles affecting entire countries.
Explanation:
Macroeconomics is the part of economic studies that studies the economy of a country as a whole. In this branch of economics, the aggregate income, growth, expenditure and inflation are considered. The performance of the entire economy is measured under macroeconomics. National income, Gross domestic product, inflation and unemployment fall under the macroeconomic studies.
Answer:
economic principles affecting entire countries
Explanation:
i took the test
Edelman Engines has $12 billion in total assets - of which cash and equivalents total $80 million. Its balance sheet shows $1.8 billion in current liabilities - of which the notes payable balance totais $0.85 billion. The firm also has $6 billion in long-term debt and $4.2 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $20 per share. The firm's EBITDA totals $0.96
billion. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What are Edelman's market/book and
its EV/EBITDA ratios? Do not round intermediate calculations. Round your answers to two decimal places
Edelman Engines' market/book ratio is approximately 1.43, and its EV/EBITDA ratio is approximately 13.49.
To calculate Edelman Engines' market/book ratio and EV/EBITDA ratio, we need to consider the relevant financial figures provided.
Market/Book Ratio:
The market/book ratio is calculated by dividing the market value of the company (market capitalization) by its book value of equity.
Market Capitalization = Number of Shares Outstanding * Stock Price
Market Capitalization = 300 million shares * $20 per share
Market Capitalization = $6 billion
Book Value of Equity = Total Assets - Total Liabilities
Book Value of Equity = $12 billion - ($1.8 billion + $6 billion)
Book Value of Equity = $4.2 billion
Market/Book Ratio = Market Capitalization / Book Value of Equity
Market/Book Ratio = $6 billion / $4.2 billion
Market/Book Ratio ≈ 1.43
Therefore, Edelman Engines' market/book ratio is approximately 1.43.
EV/EBITDA Ratio:
The enterprise value (EV) is calculated by adding the market value of equity (market capitalization) to the book value of debt.
Enterprise Value = Market Capitalization + Book Value of Debt
Book Value of Debt = Long-term Debt + Current Liabilities - Notes Payable
Book Value of Debt = $6 billion + $1.8 billion - $0.85 billion
Book Value of Debt = $6.95 billion
Enterprise Value = $6 billion + $6.95 billion
Enterprise Value = $12.95 billion
EV/EBITDA Ratio = Enterprise Value / EBITDA
EV/EBITDA Ratio = $12.95 billion / $0.96 billion
EV/EBITDA Ratio ≈ 13.49
Therefore, Edelman Engines' EV/EBITDA ratio is approximately 13.49 (rounded to two decimal places).
In summary, Edelman Engines' market/book ratio is approximately 1.43, and its EV/EBITDA ratio is approximately 13.49.
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explain how cost, quality, time, and agility form a basis for competitive advantage in manufacturing and the service industries.
Cost, quality, time, and agility are key factors that form a basis for competitive advantage in both manufacturing and service industries.
Cost: In both manufacturing and service industries, companies that can produce products or provide services at a lower cost than their competitors have a competitive advantage. Quality: High-quality products or services are essential for attracting and retaining customers. Companies that consistently deliver high-quality products or services are more likely to establish a reputation Time: Speed is often a critical factor in both manufacturing and service industries. Companies that can deliver products or services faster than their competitors can gain a significant advantage.orders can increase customer satisfaction and loyalty.
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In Free Market Environmentalism, economists Terry Anderson and Donald Leal write, "Subsidized irrigation encourages farmers to break prairie sod and plant crops in arid regions. Rather than choosing drought-resistant crops that might be more appropriate in an environment undergoing global warming, farmers intensify the use of pesticides and chemical fertilizers to increase their yields". Which of the following explains the deadweight loss from irrigation subsidies?A) Farmers are using methods that do not match their incentives.
B) Farmers are using methods that do not result in the highest crop yield.
C) Farmers are using methods for which the social cost of growing food exceeds the social benefit.
D) Farmers are using methods without considering the methods' opportunity cost.
Answer:
b
Explanation:
True or False: After calculating how much money you have left after paying for all of your monthly expenses, you can
olan on spending up to 50% of that amount on car expenses
Based on microeconomic theory, it is true that after calculating how much money you have left after paying for all of your monthly expenses, you can
plan on spending up to 50% of that amount on car expenses.
Note that after making a payment on living expenses, such as rent, mortgage, utilities, loans, car payments, and food, the money that remains is discretionary income.
This discretionary income can be used as savings, investment, or spending on your discretionary expenses such as vacations and travel expenses, car expenses.
This is because discretionary expenses are categorized under wants instead of needs.
Thus, given that planning for car expenses is a want, then the statement in the question is True.
Hence, in this case, it is concluded that the correct answer is "True."
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when assessing a patient who has frequent or urgent need to urinate and urine with a foul or strong odor, you might expect to discern what other finding
The frequent or urgent need to urinate and urine with a foul or strong odor suggests a urinary tract infection (UTI) in the patient. This may be accompanied by a fever.
When a patient has a frequent or urgent need to urinate and urine with a foul or strong odor, it may suggest a urinary tract infection (UTI) in the patient. UTIs are commonly caused by bacteria that enter the urethra, which is the tube that carries urine from the bladder to the outside of the body. The symptoms of a UTI can include a strong, persistent urge to urinate, a burning sensation when urinating, passing frequent, small amounts of urine, and cloudy or strong-smelling urine. A UTI may also cause pain or discomfort in the lower abdomen and a low-grade fever. In more severe cases, a patient may experience blood in the urine, back pain, and chills. It is important to note that these symptoms are not unique to UTIs and can be indicative of other conditions as well. Therefore, a thorough assessment of the patient is required to arrive at an accurate diagnosis. This may involve a physical examination, laboratory tests, and imaging studies to rule out other possible causes of the patient's symptoms.
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what is one major advantage of creating a division of labor?
Division of Labor's Benefits Many of the benefits of dividing labor in the workplace are self-evident. Saving time is one of them. Assigning tasks to each employee that are best suited to her abilities. Productivity is rising. For the tasks at hand, you only need one set of tools rather than many.
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A small group of consumers that come into a facility to try new products while being observed is called ________.
A small group of consumers that come into a facility to try new products while being observed is called Focus Group.
What does focus group do?
A focus group is a type of research method that involves a group of people who are brought together to discuss a product, service, or concept. The group is usually composed of 8 to 10 people and is led by a moderator. The purpose of the focus group is to gain insights into the attitudes and behaviors of the target audience. During the session, the moderator will ask questions to the group and guide the discussion in order to gain a better understanding of their opinions and preferences. The group’s responses are then analyzed and used to inform marketing decisions. Focus groups can be used to test new products or services, develop marketing campaigns, and explore customer reactions to a variety of topics.
Focus groups are often used in fields such as market research, public opinion research, and social research.
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