Answer:
Increases in the production of one good require larger and larger sacrifices of the other good
Explanation:
Option first is correct because the opportunity cost refers to the sacrifice of another commodity in order to increase the production of one commodity. For example, if a country produces two commodities that are wheat and paddy. So if the country wants to increase the production of wheat then it has to decrease the production of paddy. Thus, the magnitude of decrease of paddy is the opportunity cost of wheat. Therefore, option A is correct.
Answer:
true
Explanation:
Equilibrium is the point at which quantity supplied equals quantity demanded. Above equilibrium price, there would be excess supply and below equilibrium price, there would be excess demanded and a shortage.
Equilibrium price is $20 units and equilibrium quantity s 240 units
When price is $16, demand is 275 and supply is 200 units
Shortage = 275 - 200 = 75 units
Answer:
$360
Explanation:
We can compute net income to be
The ending balance of retained earnings = Beginning balance of retained earnings + net income - dividend paid.
Where,
Dividend = $482
Change in retained earnings = $122
Hence,
Net income = Dividend - Change in retained earnings
= $482 - $122
Net income = $360
Answer:
Reward-to-risk for stock Y = (0.124 - 0.052) / 1 = 0.072 = 7.2%
Reward-to-risk for stock Z = (0.082 - 0.052) / 0.6 = 0.05 = 5%
SML reward to risk is beta of market. i.e., 6.4%
Explanation:
