The Use of Level 1 Inputs in Calculating Fair Value

question 9

Essay

The use of level 1 inputs in calculating fair value requires the existence of an active market.Provide four examples where a market is not considered to be active.

---

Definitions:

Peanut Butter

A staple food product made from ground dry roasted peanuts, often spread on bread or used as a cooking ingredient.

Perfect Complements

Goods that are always used together in fixed proportions, where the consumption of one is directly tied to the consumption of another.

Indifference Curves

Graphs representing combinations of two goods that provide an individual with equal levels of satisfaction or utility, showing consumer preferences.

Marginal Utility

The extra pleasure or benefit derived from consuming an additional unit of a product or service.