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3 years ago

When is output level and supply inelastic? short run or long run

1 answer:

4 0

Output and input levels always tend to an equilibrium point it the long run, meaning they are inelastic in the long run.

Elasticity refers to how much supply and/or demand changes with changes in pricing. The more elastic, the more change there is.

In the short-term, output and and supply can change dramatically, but in the long run things tend back to the middle (equilibrium).

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Stock J has a beta of 1.26 and an expected return of 13.46 percent, while Stock K has a beta of .81 and an expected return of 10

Oxana [17]

Answer:

J = 0.422

K = 0.58

Explanation:

When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.

Let us define the weight of stock J = x

Let us define the Weight of stock K = (1-x)

To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1

When we open the brackets,

1.26x + 0.81 - .81x = 1

1.26x-0.81x = 1-0.81

0.45x = 0.19

To get x we divide through by 0.45

X = 0.422

Therefore the Weight of stock J = 0.422

Then the Weight of stock K = 1 - 0.422 = 0.578

Approximately 0.58

5 0

3 years ago

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current

goldenfox [79]

Answer:

A. $287,000

B. $192,050

Explanation:

a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.

b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050

Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:

=[$287,000 - ($181,050-$86,100)]

=$287,000-$94,950

=$192,050

5 0

3 years ago

If Norman invested $100,000 for 3 years at 12%, how much interest on interest will he earn? (Do not round intermediate calculati

Scrat [10]

Answer:

$224.64

Explanation:

Norman invested $100,000, Interest rate 12%, Period 3 years

In compound account, the interest earned by the end of the year qualifies to earn interest. At the end of the period, the interest is added to the principal and earns interest as well.

The interest that Norman earned in the first year was added to the principal amount in the second year, meaning that interest earned some interest in the second and their year of investment. The same happened to the interest earned in the second year.

To calculate the interest earned by the interest, we take the amount after three years, minus the principal amount, minus the simple interest for the three years.

Interest on interest will be the Future value- principal amount- Simple interest.

The amount after three is the compounded value after three years.

compound amount formula FV= PV × (1+r)n

Future value of $100,00 @ 12% after 3 years will be

=5000 x (1+12/100) 3

=5000 x (1+0.12)3

=5000 X (1.12)3

=5000 x 1.404928

=7,024.64

The simple interest earned in the three years equal

Interest = principal x rate x duration

12/100 x 5000 x 3

=0.12 x 5000 x 3

=600 x 3

=$1800

Interest on interest will be :

=$7,024.64 - $5,000- $1,800

=$224.64

7 0

3 years ago

A group of nations establishes a free-trade zone. What is the most likely effect?

mixer [17]

The answer is trade increases<span />

4 0

3 years ago

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly. Big Johns

artcher [175]

Answer:

Option A is correct,price discrimination

Explanation:

Price discrimination is charging different customers different prices in the same or different markets.

There are laws that frown against price discrimination in order to ensure fairness in business dealings and to ensure the activities of price discriminator does have negative effects on consumers or businesses that rely on the price discriminator for inputs.

A typical example of price discrimination is financial aid which is common with online courses,where certain people due to their peculiarities are offered financial assistance in their bid to study that is available to some other students.

8 0

3 years ago