Answer: Option (C) is correct.
Explanation:
Constant returns to scale production function: When there is an increase in inputs (i.e capital and labor) as a result output increases by the same proportion.
For example: If the amounts of equipment and workers are both doubled in the production of bread then as a result the output of bread also doubled.
Suppose the capital and labor increases by 10% then as a result output also increases by 10%.
Answer:
The price of the stock today is $42.94
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate is calculated using the constant growth model of Dividend Discount model approach. It bases the price of the stock on the present value of the expected future dividends. The price today under this model is calculated as follows,
P0 = D0 * (1+g) / r - g
Where,
- D0 * (1+g) is the D1 or the dividend for the next year
- r is the required rate of return
- g is the growth rate in dividends
P0 = 4 * (1+0.052) / (0.15 - 0.052)
P0 = $42.938 rounded off to $42.94
Answer:
The opportunity cost of each pipe and what is the sunk cost is $77 and $67 per pipe respectively.
Explanation:
Opportunity cost: The opportunity cost is that cost which is incurred to choose the best options with the available options.
Sunk cost: The sunk cost is that cost which is not recovered in the future. Its other name is the past cost. It does not help to make future decisions as if it is incurred then it cannot be recovered again
So, the opportunity would be the current price i.e $77
And, the sunk cost is $67 per pipe ($77 - $10)
The company would most probably be interested in early majority
.
<u>Explanation:
</u>
Adopter categories split consumers into sections on the basis of their willingness to try out new innovations or products.
The categories of adopters had been first given the name and defined by social scientist Everett Rogers in 1962 in the famous book Propagation of Innovation.
Adopter categories as a concept for the propagation of the theory of creativity are extended to several studies, amongst others, marketing, administrative studies, management of information, communications and research of complexity.
Early majority: If this group joins an idea or some other innovation, it appears to be adopted by the public shortly. This group makes useful decisions and practical advantages over coolness.
