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3 years ago

why do economics often use the other things constant assumption when they develop econonmic theories?

1 answer:

3 0

The Latin word "Ceteris Paribus," often used in Economics simply means, with other things being the same or all things being equal.

The major reason why economics often use "Ceteris Paribus" is to eliminate other factors which might complicate an outcome.

For instance, If the price of pork increases, people will purchase less pork, that is Ceteris Parabus. In this instance, ceteris paribus means that the possibility of other factors affecting the sales of pork will not be considered. Other factors such as an announcement were made that pork causes cancer, or the price of Chicken has increased, thereby making pork the best alternative, hence, all these other factors will not be considered, therefore in this situation, economics only wants to consider what happens if the price of pork rises while keeping all other factors the same.

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Williams Alternative Power, Inc., a company developing solar panels, has done considerable research and limited production durin

Juli2301 [7.4K]

Answer:

greatly increased.

Explanation:

IPO refers to Initial Public Offering which is what new companies begin to do by offering initial shares of the company in order to raise money. This being said we can say that at this stage of its life cycle, its ability to attract venture capital is greatly increased. This is because Venture Capital are private equity from a large number of firms looking to invest in new companies with very high growth potential for the future.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0

3 years ago

Read 2 more answers

Prior to the launch of its financial service, Mint made extensive use of ______ which helped search engines view this business a

Dafna1 [17]

Answer:

Blogs

Explanation:

Blogs are information websites that provides relevant information for a target group in a diary style arranged according to date.

The most recent posts appear first in the website.

Mint has used blogs to provide relevant information to users.

Search engines analyse the contents of websites to determine of they are relevant sources of information.

Mint's blogs have help search engines identify the company as a relevant source of personal financial topics

8 0

3 years ago

If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important fa

babunello [35]

Answer:

c. criterion deficiency

Explanation:

Based on the information provided within the question it can be said that in this scenario it seems that the performance management system suffers from Criterion deficiency. This term refers to a company failing to assess one or more very important aspects of the process of job performance appraisal for employees within the company. Such as is the case in this scenario as the company is only looking at the sales revenue and completely ignoring all of the other important factors.

8 0

3 years ago

Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba

Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%) + (2% × 10%)

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0

3 years ago

A calendar year corp. has substantial accumulated E&P, but it expects to incur a deficit in current E&P for the year due

Vadim26 [7]

Answer:

The statement is inaccurate.

Explanation:

Comment on the validity of this statement. LO 3 (p. 19-9).

The statement is inaccurate. When a deficit exists in current E & P and a positive balance exists in accumulated E & P, the accounts are netted at the date of distribution. If a positive balance results, the distribution is a divide to the extent of the balance. Any loss in current E & P is deemed to accrue ratably throughout the year unless the parties can show otherwise.

4 0

3 years ago