Answer:
Explanation:
f(x) = (1/(15,000-10,000))/0 (elsewhere) = 1/5000
a. What is the probability that a $12,000 bid will be accepted?
P(10,000 < x < 12,000) = 2000(1/5000) = 0.40
b. What is the probability that a $14,000 bid will be accepted?
P(10,000 < x < 14,000) = 4000(1/5000) = 0.80
c. What amount should you bid to maximize the probability that you get the property?
$14,000 is my answer.
$14000 bid has a higher probability, hence a greater chance of being accepted
Market failure happens if goods and services are not distributed efficiently in the economy. Externalities can either be positive or negative. Positive externalities are benefits that may be provided whereas negative externalities are costs that may be associated. Demand, supply and wanting benefits are all sources of marketing failure and externalities.
Answer:
a resource whose capacity is less than the capacity of all other resources and whose capacity is less than the demand placed on it.
Explanation:
In a production system, a bottleneck refers to a point of congestion where an excess amount of work in progress units arrive and the process cannot handle them all. This inability to handle the inflow of units results in production queues which causes delays in the system, increases inefficiencies and reduces productivity.
Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.
Explanation:
The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.
Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.
