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1 year ago

For each of the following examples, explain whether it is a case of external or internal economies of scale:

Business

1 answer:

777dan777 [17]1 year ago

8 0

Whether it is a case of external or internal economies of scale:

A. A number of firms doing contract research for the drug industry are concentrated

Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.

when external economies of scale exist?

External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.

An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.

To learn more about external economies refer to:

brainly.com/question/20354469

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If the money multiplier is 3 and the fed wants to increase the money supply by $900,000, it could:.

Tanya [424]

Answer:

buy $300,000 worth of bonds

Explanation:

Hope this helps:)...if not then sorry for wasting your time and may God bless you:)

3 0

2 years ago

Many Americans are selling their used cars and buying new fuel-efficient hybrids. Other things remaining the same, in the mark

Ann [662]

Answer:

Supply increases and price falls; Demand increases and price increases.

Explanation:

Other things remains the same,

If many Americans are selling their used cars, then this will lead to increase the supply of used cars in the market for used cars and shifts the supply curve rightwards. This shift in the supply curve will decrease the prices of used cars.

Now, Americans are buying new fuel-efficient hybrids which will increase the demand of hybrids in the market for hybrids and shifts the demand curve of hybrids rightwards. Therefore, this shift in the demand curve of hybrids will increase the prices of hybrids.

Note: Missing options are attached with the answer.

8 0

3 years ago

5. The International Property Right Index scores countries based on the legal and political environment and how well property ri

nexus9112 [7]

Answer:

I used the most recent figures of the international property rights index (year 2019), and the most recent GDP per capita estimamtes by the IMF in purchasing power parity. (year 2019)

Three countries with high scores, with GDP per capita (PPP):

Finland - score of 8.712 - U$ 46.430
Switzerland - score of 8.571 - U$ 64.649
United States - score of 8.202 - U$ 62.606

Three countries with low scores, with GDP per capita (PPP):

Ukraine - score of 4.432 - U$ 9.283
Pakistan - score of 3.874 - U$ 5.680
Haiti - score of 2.703 - U$ 1.864

The pattern that we find is that there is a strong correlation between the International Property Right Index scores and the GDP per capita figures. This is consistent with the findings in other similar rankings such as the Global Competitiveness Report, published by the World Economic Forum, and the Economic Freedom Index, published by the Heritage Foundation.

What can be interpreted is that property rights, and the strong enforcement of those property rights promote economic development and growth. This is because the protection of private property stimulates human action. For example, the United States has a strong judiciary, and rule of law. In this country, people can invest their money in a project with the certainty that those invesments will not be expropriated by an arbitrary judiciary. This promotes development because investing leads to higher economic output.

Those same incentives do not exist in countries that do not enforce property rights, and that is one of the main reasons why they are poor.

4 0

2 years ago

At the Bourg Company, a primary ______ is to increase the monthly revenue by 10%. Bourg considers revenue targets a key part of

mr_godi [17]

Considering the subsequent description given in the question, At the Bourg Company, a primary sales goal is to increase the monthly revenue by 10%.

This is evident in the fact that Bourg considers revenue targets a vital part of the company strategy. Here, the revenue of a company is derived from sales.

Also, given that the targets at the Bourg Company are stated in clear, precise, and measurable terms, and they always specify a time frame for completion, this is an example of a sales goal.

Sales goal is a term used in business management to describe the defined goals for a firm's sales team.

Sales goals could be expressed as increasing revenue by 13% in a year or improving customer retention by 18%.

Hence, in this case, it is concluded that the correct answer is "sales goals."

Learn more here: brainly.com/question/23162020

6 0

2 years ago

You have $106,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

Helga [31]

Answer: ER(P) = ERX(WX) + ERY(WY)

16 = 13(1-WY) + 9(WY)

16 = 13 - 13WY + 9WY

16 = 13 - 4WY

4WY = 13-16

4WY = -3

WY = -3/4

WY = -0.75

WX = 1 - WY

WX = 1 - (-0.75)

WX = 1 + 0.75

WX = 1.75

The amount to be invested in stock Y = -0.75 x $106,000

= -$79,500

The Beta of the portfolio could be calculated using the formula:

BP = BX(WX) + BY(WY)

BP = 1.14(1.75) + 0.84(-0.75)

BP = 1.995 - 0.63

BP = 1.365

Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500

The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.

6 0

2 years ago