Answer:
It determines the degree to which the net present value reacts to changes in a single variable
Explanation:
Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.
It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.
Answer:
C) the industry would more closely approximate pure competition
Explanation:
A monopolistically competitive industry is one with different firms selling similar products that are slightly differentiated. It is very easy for firms to enter into industries that are monopolistically competitive. They also have the autonomy to increase their prices.
If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes they would then resemble a pure competition because they would all be selling identical products which would result in little or no competition.
Answer: (D) Fairness and honesty
Explanation:
The fairness and the honesty are the two main business ethics that helps in providing the various types of attributes such as integrity and the honesty with the customers regarding the products and the services.
These are the moral standard that helps in the decision making process by reducing the discrimination, mis-representation and also the coercion.
According to the given question, the business people are not providing any harm to the client, customers and also the competitors, this is the practicing of fairness and the honesty concept.
Therefore, Option (D) is correct answer.
Answer:
The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.
Explanation:
One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.
On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.
