If a lender is a monopolist, according to the model studied in section (under asymmetric information), they will charge an interest rate such that:
Group of answer choices
it will equate the highest interest allowed by law.
Their expected profit is equal to zero.
Their expected profit line intersects with the borrower's expected income line.
The borrower's expected income is equal to zero
The interest rate will maximize their expected profits

Answers

Answer 1

They will charge an interest rate such that the interest rate will maximize their expected profits.

According to the model studied in section (under asymmetric information), if a lender is a monopolist, they will charge an interest rate such that their expected profit line intersects with the borrower's expected income line.

In this scenario, the lender will charge an interest rate that maximizes their expected profits.

Therefore, the correct option is:The interest rate will maximize their expected profits.The lender is a monopolist; hence they have the power to set the price in this market. The expected profit of the lender will be positive when they charge the interest rate that maximizes their expected profits.

The profit will decrease if they charge a lower interest rate than the maximum profit interest rate. If they charge an interest rate that is higher than the maximum profit interest rate, they would not gain a profit.

Lenders under the condition of asymmetric information, where lenders know more than borrowers, will charge higher interest rates. This is due to the increased risk of default by borrowers with hidden information.

So, last option is the correct answer.

Learn more about monopolist here,

https://brainly.com/question/7217942

#SPJ11


Related Questions

Rule of law is defined as "the restriction of the arbitrary exercise of power by subordinating it to well-defined and established laws." And includes concepts such as: property rights, government integrity, and judicial effectiveness.
In two separate paragraphs, please explain how Rule of Law is relevant for
National economies (paragraph 1), and
Growth of businesses (paragraph 2)

Answers

The rule of law is relevant for national economies as it promotes transparency, accountability, and limits the possibility of corruption. It also ensures the protection of property rights, promotes fair competition, and encourages investors.

The rule of law limits the arbitrary use of power, promotes transparency, and accountability. This is significant for national economies as it makes a country a favorable destination for investment. The rule of law assures investors that their contractual agreements will be enforced, and their property rights will be protected.

In a stable legal system, businesses feel encouraged to invest more and expand, which leads to the growth of the economy and development. The legal system provides a framework that ensures economic growth by promoting fair competition, market-oriented strategies, and accountability. Thus, the rule of law plays a crucial role in national economies and creates a conducive environment for business growth and development. Its presence assures the enforcement of contracts, and minimizes risks and uncertainties that are associated with transactions.

Learn more about transactions:

https://brainly.com/question/24730931

#SPJ11

Future value with periodic rates Man Johnsos delivers newspapers and is puting away $30 at the end of each quarter from his paper route collections Matt is 11 years old and will use the money when the goes to colege in 7 years. What will be the value of Mat's account in 7 years with his quarterly payments if he is eaning 6.5% (APR), 10.5% (APR) or 13% (APRI). What will be the value of Matrs account in 7 years with his quarterly payments if he is eaming 6.5% (APRY)?

Answers

The value of Matt's account in 7 years with quarterly payments will be $327.83 at a 6.5% APR, $386.82 at a 10.5% APR, and $416.29 at a 13% APR.

To calculate the future value of Matt's account with quarterly payments, we can use the formula for the future value of an ordinary annuity:

Future Value = P * [(1 + r/n)^(n*t) - 1] / (r/n)

P = Payment amount per period

r = Annual interest rate (in decimal form)

n = Number of compounding periods per year

t = Number of years

Given that Matt makes quarterly payments of $30, we can substitute the values into the formula:

For 6.5% APR:

P = $30

r = 6.5% = 0.065 (APR)

n = 4 (quarterly compounding)

t = 7 years

Future Value = $30 * [(1 + 0.065/4)^(4*7) - 1] / (0.065/4)

Future Value = $327.83

For 10.5% APR:

P = $30

r = 10.5% = 0.105 (APR)

n = 4 (quarterly compounding)

t = 7 years

Future Value = $30 * [(1 + 0.105/4)^(4*7) - 1] / (0.105/4)

Future Value = $386.82

For 13% APR:

P = $30

r = 13% = 0.13 (APR)

n = 4 (quarterly compounding)

t = 7 years

Future Value = $30 * [(1 + 0.13/4)^(4*7) - 1] / (0.13/4)

Future Value = $416.29

Therefore, the value of Matt's account in 7 years with quarterly payments will be $327.83 at a 6.5% APR, $386.82 at a 10.5% APR, and $416.29 at a 13% APR.


To learn more about account click here: brainly.com/question/29608710

#SPJ11

Logo and website design are
examples of start-up costs.

Answers

True: Logo and website design are examples of start-up costs. Operating costs include payroll. Building improvements should be calculated into start-up costs.

how is raytheon pursuing greater revenues and profits?

Answers

Raytheon is pursuing greater revenues and profits because Raytheon is expanding into new markets in the United Arab Emirates and Saudi Arabia.

It should be noted that the main aim of an organization is to maximize profit and revenue. These are vital for the growth and development of the organization.

From the complete information, Raytheon is pursuing greater revenues and profits as the company is expanding into new markets in the United Arab Emirates and Saudi Arabia. Raytheon has set up companies in both countries that will help in addressing the defense requirements and building capacity.

Read related link on:

https://brainly.com/question/25378879

Learning Objective 4 - Prepare Financial Statements
From the data below prepare an income statement, a statement of owner's
equity, and a balance sheet for the month ended March 31, 200x for Snow
Excursions Company.
Description
Balances on March 31, 200x
Jon Snow Capital (beg balance)
S2,000
Snow Equipment
1.000
Rent Expense
400
Accounts Payable
2,000
Fee Revenue
1.000
Cash
3,000
Utilities expense
100
Accounts Receivable
150
5
Salary expenses
200
Withdrawals
150

Answers

Answer:

150Explanation:

what do you prefer local fundraising or global fundraising and why? (just one reason)

Answers

Answer:

Doing local fundraising for a large organization can sometimes seem complicated and unwieldy.  Whether you are running a local affiliate of a large national organization, or are responsible for raising funds in a single neighborhood for a small, city-wide charitable group, raising local money for larger groups presents a unique challenge. I prefer local fundraising

global fundraising

Explanation:

because you can help people without water and electricy

\(\mathtt{\huge{\purple{\underline{\underline{Answer :}}}}}\)
What was the stamp act?
Don't Spam!​

Answers

The stamp act is what happened after a war so that The british could pay off there debt

Business Law Questions:

Homework assignment for Week 15

Saxon, the president and director of a corporation engaged in owning and operating a chain of restaurants, was advised, on what seemed to be good authority, that a highway was to be constructed through the town of Portland, which would be a most desirable location for a new restaurant. Saxon presented the relevant facts to the board of directors of the corporation and recommended that the corporation build a restaurant in Portland at the location indicated. The board of directors agreed, and the new restaurant was constructed at significant cost. The plans for the highway were changed after the restaurant had been constructed, and the highway was built in a location different from the original plan. The restaurant was a total financial disaster. The shareholders brought an appropriate action against Saxon, charging that his proposal had caused the corporation a substantial loss. What is the result? Please explain.

Answers

In this scenario, the shareholders of the corporation have brought an action against Saxon, the president and director of the corporation, for causing the corporation a substantial loss by proposing the construction of a restaurant in a location that turned out to be a financial disaster.

Under the business judgment rule, directors and officers of a corporation are protected from liability for their business decisions if they make those decisions in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and in the best interests of the corporation. If a decision turns out to be a mistake or results in a loss, the courts will not second-guess the decision as long as it was made in accordance with these standards.

In this case, it appears that Saxon made a business decision to recommend the construction of a new restaurant in Portland based on information that seemed to be reliable and in the best interests of the corporation. He presented the relevant facts to the board of directors, who agreed with his proposal and authorized the construction of the restaurant. It was only after the restaurant was built that the plans for the highway were changed, resulting in a financial disaster for the corporation.

Assuming that Saxon acted in good faith, with the care of an ordinarily prudent person in a like position, and in the best interests of the corporation, he would likely be protected by the business judgment rule. The fact that the decision turned out to be a mistake or resulted in a loss does not necessarily mean that Saxon breached his fiduciary duty. The shareholders would have to show that Saxon acted recklessly or negligently, or that he had a conflict of interest that influenced his decision, in order to hold him liable for the corporation's losses.

Therefore, the result of the action brought by the shareholders against Saxon would depend on whether they can prove that he breached his fiduciary duty of care and loyalty to the corporation. If they cannot meet this burden of proof, Saxon would likely be protected by the business judgment rule and not liable for the corporation's losses.

To know more about highway here

https://brainly.com/question/1071443

#SPJ4

4. Which of the following statements is true about debits?
a) Debits show an increase in what a company owns or a decrease in what it owes.
b) A debit to an asset account shows a decrease.
c) A debit to a liability account shows an increase.
d) Debits show a decrease in what a company owns or an increase in what it owes.

Answers

Answer:

I believe the answer is d

What are 2 laws in the UK that promote good ethical practice in an organisation?

Answers

Answer:i think its uhh carrot

Explanation:

what is meant by recession

Answers

Answer:

Spatial recession in paintings is the relationship between objects which appear to lie near to the observer and those which seem further away, and thus recede into space. ...

Explanation:

Why does the Director choose the Fertilizing Room to meet?

Answers

The Director's choice to meet in the Fertilizing Room serves to underscore the importance of reproduction and genetic engineering in the world of "Brave New World", as well as to reveal some of the darker aspects of this supposedly perfect society.

In the dystopian society depicted in Aldous Huxley's novel "Brave New World", the Director chooses the Fertilizing Room to meet for several reasons. First and foremost, the Fertilizing Room is a place of great importance in this society, as it is where the creation and manipulation of embryos takes place. By choosing to meet in this location, the Director is highlighting the central role that reproduction and genetic engineering play in the world of "Brave New World".
Additionally, the Fertilizing Room is a highly controlled environment, with strict protocols and procedures in place to ensure that the embryos are created and conditioned in a specific way. By meeting in this location, the Director is able to emphasize the importance of conformity and adherence to the rules, as well as the power that those who control the process of reproduction hold in this society.
Furthermore, the Fertilizing Room represents a sort of "behind-the-scenes" aspect of the world of "Brave New World", which is typically presented to citizens as a flawless and perfect utopia. By meeting in this location, the Director is able to reveal some of the darker truths about this society, such as the dehumanizing effects of genetic engineering and the lack of individuality and freedom.
For more such questions on society

https://brainly.com/question/20713438

#SPJ11

All ATA a 6100 P RO Intro A stock has a price of $48 and just paid an annual dividend of $1.2. The dividend is expected to grow by 5% per year. Part 1 Attempt 1/10 for 1 pts. What is the expected dividend yield? 3+ decimals Submit Part 2 B Attempt 1/5 for 10 pts. What is the expected capital gains yield? 4+ decimals Submit

Answers

To calculate the expected dividend yield, you divide the annual dividend by the stock price:

Dividend Yield = Annual Dividend / Stock Price

Given that the annual dividend is $1.2 and the stock price is $48, we can calculate the dividend yield:

Dividend Yield = $1.2 / $48 = 0.025

The expected dividend yield is 0.025, or 2.5% (rounded to 3 decimals).

To calculate the expected capital gains yield, you need to consider the growth rate of the dividend. The capital gains yield is the percentage increase in the stock price resulting from the dividend growth.

The dividend is expected to grow by 5% per year, so the capital gains yield can be calculated as:

Capital Gains Yield = Dividend Growth Rate

In this case, the capital gains yield is 5% (rounded to 4 decimals).

Please note that in some cases, the capital gains yield may be calculated differently, taking into account other factors such as changes in the stock price over time. However, based on the information provided, the capital gains yield is simply the same as the dividend growth rate.

To know more about dividend growth rate click this link-

https://brainly.com/question/18650705

#SPJ11

Type the correct answer in the box. Spell all words correctly.
What does this situation demand from the company?
Martha bought a new laptop a week ago. She’s having trouble understanding how the laptop functions. She wants the store where she bought the laptop to help her. The store should provide Martha with good_______
by giving her all the information she needs.

Answers

Answer:

After-sales service

Explanation:

After-sales service are all the efforts of a business to keep its clients happy and satisfied with the products they have purchased. It is providing care to customers after they have made purchases from the business. After-sale service help in retaining and building loyal customers.

Some of the techniques used in after-sales service include

Keeping in touch with customers after purchases Responding to customer queries either on call, emails, or customer visit Offering technical supports when a customer is facing challenges like in the scenario described above

Answer:

customer service

Explanation:

I just took the test on Edmentum

In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

Answers

Answer:

an aggregate production function. Hope it helps!

What is the first step in the standard purchasing process practiced by most
companies?
A. Solicit bids
B. Requisition
C. Invoicing
D. Purchase order

Answers

Answer:

B. requisition

Explanation:

i have done this before, hope i helped

I think b
Hope its help for your questions

list out 15 trainings conducted by FNCCI​

Answers

1 Disciplinary Action & Termination of Employment August 23, 2015 August 23, 2015
2 Human Resource Management in Current Perspective September 22, 2014 September 23, 2014
3 Disciplinary Action & Termination of Employment March 09, 2014 March 09, 2014
4 Misconduct & Disciplinary Action September 22, 2013 September 22, 2013
5 Hiring and Termination Practice in Denmark August 30, 2013 August 30, 2013
6 Information sharing on "Hiring and Termination Practice in Denmark". May 31, 2013 May 31, 2013
7 Designing Human Resource Systems November 04, 2012 November 05, 2012
8 Marketing Skills Training July 19, 2012 July 20, 2012
9 Training on Negotiation Skills December 29, 2011 December 30, 2011
10 Enhancing Supervisory and Leadership Skills - - (sorry that’s all I got) :(

is business bank account an asset?

Answers

The money you have stashed away in your checking account or savings account can be considered a solid asset. You can easily access these funds which makes them especially valuable.

Answer:

But what is a business bank account? A business bank is an asset. An asset is anything that makes your business money, whereas a liability is anything that costs your business money.

Hoped this helped plz mark brainly i really need it thx:)

PPG emphasizes ________ in its strategic planning; it develops four alternative futures based on two key variables: the cost of energy and the extent of growth opportunities in emerging markets.
A. Porter's five-forces model
B. SWOT analysis
C. strategic groups
D. scenario analysis

Answers

Scenario analysis, a strategic planning system used by some associations to produce flexible long- term plans. This is option D.

Scenario analysis is the process of estimating the anticipated value of a portfolio over a period of time assuming certain changes in the value of the portfolio's securities or crucial factors similar as a change in interest rates.

Scenario Analysis can help you make better opinions or plan your business strategy by challenging your hypotheticals about the future. Exploring a variety of indispensable scripts allows you to identify implicit pitfalls and plan how to help or alleviate their impact.

enables professionals and the general public to respond stoutly to an unknown future. It helps them suppose about the numerous ways the future might unfold, and how to be responsive, flexible, and effective when the future becomes a reality.

To know more about Scenario Analysis,

brainly.com/question/29991029

#SPJ4

fast pls The Fair Labor Standards Act does not cover which of the following?
unemployment compensation
child labor
minimum wage
overtime pay

Answers

The answer is unemployment compensation :) hope this helps

The master production schedule is a crucial input into the aggregate operations plan. True or False

Answers

True. The master production schedule (MPS) is indeed a crucial input into the aggregate operations plan.

The MPS provides the detailed information regarding the specific quantities and timing of the production of individual end items. It serves as a key reference for planning and coordinating various production activities, including materials procurement, capacity utilization, and workforce scheduling.

The aggregate operations plan, on the other hand, takes a broader perspective and focuses on strategic decisions regarding capacity, production levels, and resources over a longer time horizon. The MPS, with its detailed production schedule, helps inform the aggregate operations plan by providing specific data on production requirements and enabling the coordination of resources to meet demand.

By aligning the MPS with the aggregate operations plan, companies can optimize their production processes, manage inventory levels effectively, and ensure a smooth flow of materials and finished products to meet customer demand.

Learn more about operations plan here:

https://brainly.com/question/29642933

#SPJ11

Convincing a person using appeal and understanding is_____.

Answers

Answer:

persuasion or pathos?

Persuasion or Pathos

when the supreme court judges vote unanimously on a case, this usually indicates a _____ model of decision-making.

Answers

Legal.


Hope this answers your question

Which of the following is a benefit of a bank?
A. You can get your cash quickly and easily.
B. A bank is insured by the federal deposit insurance corporation
C. You assets are safe from theft, loss, and fires
D. All the above

Answers

Answer:

D

Explanation:

Answer:

D. All the above

Explanation:

being a spender has many more positives than being a saver. True or false?

Answers

This statement is subjective and there is no objective answer. It depends on one's personal financial goals, values, and circumstances.

Being a spender may have some positive aspects, such as enjoying experiences, acquiring new possessions, and supporting the economy through consumption. However, excessive spending can also lead to financial problems, debt, and stress.

Being a saver, on the other hand, may also have some positive aspects, such as building financial security, preparing for unexpected events, and having the freedom to make choices. However, saving may also mean delaying gratification, sacrificing immediate wants for future goals, and missing out on some financial goals.

Ultimately, the key to financial success is finding a balance between spending and saving that aligns with one's personal goals and values.

Learn more about  financial goals here

https://brainly.com/question/20595979

#SPJ4

1. Which of the following do NOT make sense?
Group of answer choices
One way to value a company is to look at the PE ratio of comparable firms, and the apply it to the firm we are trying to value.
Jetblue was able to take advantage of economies of scale by focusing on high demand routes and maintaining only one type of aircraft
Jetblue’s international flights made up most of its revenues
All of these choices make sense
Jetblue’s earnings were pretty good compared to its competitors

Answers

The statement "Jetblue’s international flights made up most of its revenues" does not make sense. The correct option is C.

Jetblue is primarily known as a low-cost domestic airline in the United States, and its business model focuses on serving high-demand routes within the country.

While Jetblue does offer some international flights, they make up a smaller portion of its overall operations and revenue compared to its domestic flights.

Regarding the statement about Jetblue's earnings being good compared to its competitors, it would require specific information and comparison with actual competitors' earnings to assess its validity.

However, without specific data on Jetblue's earnings and its competitors' earnings, it is difficult to determine the accuracy of the statement. The correct option is C.

To know more about Jetblue, refer here:

https://brainly.com/question/14553511#

#SPJ11

when today's managers analyze the basic work tasks that must be performed, use time-and-motion study to eliminate wasted motions, hire the best qualified workers for a job, or design incentive systems based on output, they are using the principles of .

Answers

When today's managers analyze the basic work tasks that must be performed, use time-and-motion study to eliminate wasted motions, they are using the principles of scientific management.

Scientific management is a management theory that examines and synthesises workflows. Its primary goal is to improve economic efficiency, particularly labour productivity. It was one of the first attempts to apply science to process engineering in management.

Taylorism, named after its founder, Frederick Winslow Taylor, is another name for scientific management. Taylor pioneered the theory in the United States during the 1880s and 1890s in the manufacturing industries, particularly steel. It reached its pinnacle of power in the 1910s.

Although Taylor died in 1915, scientific management remained influential by the 1920s, but it had entered into competition and syncretism with opposing or complementary ideas.

To know more about scientific management:

https://brainly.com/question/29921638

#SPJ4

what do you pore first the cereal or the milk? True or false.

Answers

Well this is a HUGE ARGUMENT in my family... I personally add the cereal THEN the milk (even tho I don’t rlly like milk ok) but my parents say you need to add milk first. But I wonder how will you eat dry cereal when milk is st the bottom? WTH

marketing organizations’ decisions to offer ______________________ often attracts competitive entry; whereas decisions to offer ________________ generally discourage market entry by new competitors.

Answers

Marketing organizations' decisions to offer low prices often attract competitive entry; whereas decisions to offer unique products generally discourage market entry by new competitors.

The competitive entry is low because low prices can be easily matched by competitors, but unique products are more difficult to replicate.

Low price put the risk on a firm because the firm has to decrease its production cost to keep earning profit from the lower selling price. Without lower production cost, it is impossible for the firm to earn profit. However, this strategy will be effective especially on a price sensitive market. The sudden increase on demand will attract more competitors who will try to sell their products at even lower price. This move will decrease the firm's demand and push the firm to lower its selling price to keep its customers.

Therefore, offering unique products can provide a competitive advantage and discourage new competitors from entering the market. Offering unique products can be discouraging the new competitors because they need further research and design about the new products. These research and design process consume both time and cost.

Moreover, since the product is new in the market, there is no success guarantee for it. The new competitors tend to hold themselves and see the market responses towards the new products before entering the market and competing with the current producers.

Learn more about Competitive Entry here: brainly.com/question/17218903

#SPJ11

Well-known Keynesian theory says that the individual consumption increases with their income increase, but not as much as the increase in their income. By using this theory develop a single liner regression model and explain the eight (8) steps on econometrics methodology in details.

Answers

Keynesian theory is a macroeconomic theory, which suggests that government intervention is required to control fluctuations in output and employment levels. This theory assumes that an individual's consumption increases with an increase in income, but not in proportion to the income increase.

A single linear regression model is a statistical tool used to identify the relationship between two variables, one dependent and one independent. In this case, the consumption is the dependent variable, and income is the independent variable.The eight (8) steps in econometrics methodology are as follows:1. Formulate the hypothesis: This is the first step, where we define the research problem and set up the hypotheses. In this case, the hypothesis is that individual consumption increases with an increase in income.

2. Collect data: The next step is to collect data related to income and consumption.3. Analyze data: The data collected is then analyzed to identify the relationship between income and consumption. A scatter plot can be used to visualize the relationship between the two variables.4. Estimate the parameters: The regression equation is used to estimate the parameters for the dependent and independent variables.5. Evaluate the hypothesis: Once the parameters are estimated, we evaluate the hypothesis by testing it against the collected data.

6. Draw conclusions: Based on the test results, we draw conclusions about the hypothesis.7. Make predictions: Once the hypothesis is confirmed, we can use the model to make predictions about future income and consumption levels.8. Document the findings: The final step is to document the findings and share them with others. This includes writing a report, preparing a presentation, or publishing the findings in a journal.

To know more about regression equation visit :

https://brainly.com/question/32810839

#SPJ11

Other Questions
Eukaryotic cells contain complex organelles that carry out their chemical reactions. While prokaryotes lack many of these complex organelles, they have a variety of unique structures of their own. Most prokaryotic cells can, however, exchange nutrients with the outside environment faster than most eukaryotic cells. Why is this so Assuming: - 100% efficient energy conversions. - A 4.3 MW wind turbine operates at full capacity for one day. How many barrels of oil is equivalent to the electrical energy created by the wind turbine? 2/4 = 1/2 1/3 circle the equivalent fraction Some body fat is needed for overall good health.True or false Find MK using Pythagorean theorem or proportions disregarding air resistance, what is the speed of a ball dropped from 12 feet just before it hits the ground? (use 1 ft G5a. 1p Pine Sreet. Rector Street, and Taylor Street intersect to form a triangular-shaped park as shown. Given the angle measures. order the lengihs of the sides from longest to shortest. Pine Street 54 64 Rector Street Taylor Street O A. Rector, Taylor, Pine O B. Pine, Taylor, Rector O C. Taylor, Pine, Rector O D. Rector, Pine, Taylor f (x) = x2 5, what is f(1) A homogeneous mixture is: A. composed of only one type of element. B. composed of different parts that are indistinguishable in their color, texture, or appearance. C. composed of different parts that are distinguishable in their color, texture, or appearance. D. composed of atoms bonded together. Two men are trying to carry a wooden pole. If one of them is weaker than other, how can they carry the pole hence making small load for the weak man? Evaluate the expression.3/64 NEED HELP PLEASE! How did the Nootka Sound Controversy and George Vancouver affect thePacific Northwest? marco polo, describing the services available for long-distance merchants in the mongol capital of khan-balik What was Andrew Carnegie's version of Social Darwinism called and discus the differences between Social Darwinism and his ideas in a paragraph. 14. Mark deposits $2000 into an account that pays an interest rate of 3.5% compounded annually. He doesnt add or remove money from his account for 4 years. How much money will Mark have in 4 years? Did I do this one right guys if not what is the correct answerr World War I was a ____ meaning that it involved a complete mobilization of resources and people.a. total warb. mobile conflictc. amphibious ward. modern conflictmeaning that it involved a complete mobilization of resources What should be considered when revising a research-based informative essay for readability?if adding multimedia would make the essay more entertainingif each body paragraph begins with an effective topic sentenceif there are any unfamiliar words that the audience will misunderstandif more engaging language could be used to maintain audience attention the arch that runs front to back on the inside of the foot is the __________. Is 3/4 greater than 3/5