The Solow Growth Model is a short run growth model of economic growth which shows or illustrates the changes in the level of output in an economy over time, as a result of changes in

- savings rate

- population growth rate

- rate of technological progress.

The diagram attached explains the model.

In the short run, increase in technology will increase the output per worker (looking from the microeconomic perspective) and the aggregate output (looking from the macro perspective) in the economy.

This increase in output is later stabilized in the long run.

6 0

3 years ago

Minden company introduced a new product last year for which it is trying to find an optimal selling price. marketing studies sug

Romashka-Z-Leto [24]

1. The present yearly net operating loss is $73,500.

Net operating Profit/(loss) = (Selling Price × No. of units sold) - [(Variable Cost × No. of units sold) + Fixed Cost]

Net Profit/Loss = 2362200 - (1600200 + 835500 )

Net Loss = (-$73,500).

2. The present break even point in unit sales is 27,850 units and $25,90,050 in dollar sales.

Break Even Point = Fixed Costs / (Sales price per unit - Variable Cost per unit)

= $835,500/($93 -$63)

= 27,850 units

Break Even Sales = Break Even Point × Selling Price per unit

= 27,850 × 93

= 2590050

3. The company can earn a maximum profit of $15,700 if the company sells 30,400 units at $91 per unit.

Net operating Profit/(loss) = (Selling Price × No. of units sold) - [(Variable Cost × No. of units sold) + Fixed Cost]

Net Profit/Loss = 2766400 - (1915200 + 835500 )

Net Profit = 15700

4. The new break even point in unit sales is 29,839 units and $27,15,375 in dollar sales.

Break Even Point = Fixed Costs / (Sales price per unit - Variable Cost per unit)

= $835,500/($91 -$63)

= 29839.28571 units or 29,839 units approximately

Break Even Sales = Break Even Point × Selling Price per unit

= 29,839 × 91

= $27,15,375 .

5 0

4 years ago

Beta is Question 10 options: a) A measure of the volatility of returns on an individual stock relative to the market b) Relates

Strike441 [17]

Answer: a) A measure of the volatility of returns on an individual stock relative to the market

Explanation:

Beta is indeed a measure of the volatility of returns on an individual stock relative to the return on the market as a whole.

It is used in the Capital Asset Pricing Model which enables for the calculation of the stock's expected return.

Market Beta is always 1. Therefore betas measure shows how much more or less volatile than the market return, the stock return is. For instance, a beta of 2 means that the stock's returns are twice as volatile as the markets and a beta of 0.5 means the returns are only half as volatile as the market.

8 0

4 years ago

Increased interest in cultural diversity can be attributed to all of the following except __________.

Igoryamba

Increased interests in cultural diversity can be attributed to personal travel, advances in communication and international trade, except natural selection. Cultural diversity refers to having a respect to different cultures and natural selections is not part of this.

7 0

4 years ago

Read 2 more answers