Answer:
8.54%
Explanation:
Current Index value:
= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value
= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100
= 108.54
Return in percent:
= ( 108.54 - 100 ) ÷ 100
= 8.54%
Therefore, the value-weighted return for the index is 8.54%.
Answer:
Check the explanation
Explanation:
Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.
This will reduce the cost of production of American Producers and would increase their profit-margin.
This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.
So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.
Kindly check the attached image below to see the required graph -
Answer:
Cannot be determined
Explanation:
If the marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18.
For it to be determined if Adhira is maximizing her utility, we need to compare the different units of utility per product to the individual prices of the product.
The Utility Maximization rule states that <u>consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility</u>.
It is marginal utility per dollar spent that is equalized. and not absolute utility.
Answer:
extend the product's life cycle
Explanation:
International diversification refers to a situation wherein a company extends the sale of it's products or services beyond the domestic national boundaries, dealing in different i.e diverse goods and services which are somewhat unrelated to one another.
It refers to investing in more than one nation so as to spread and reduce the risk with respect to variability and fluctuation in return.
The higher the fluctuation in return, the higher is the risk, the more stable the return, lower the risk.
Diversification refers to investing in different assets and securities or nations, whose performance is least correlated to one another so that if one economy yields losses, profits and gains from another nation or economy would offset such losses and thus reduce the risks to which the total investment is subject to.
As per Raymond Vernon, the rationale behind international diversification is to extend the product's life cycle as international diversification increases the product's life cycle and i.e the period between a product's development and it's decline and withdrawal from a market.
