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dalvyx [7]
3 years ago
8

How long will it take for the dollar's purchasing power to be 3/4ths of what it is now, if the general inflation rate is expecte

d to continue at 5%?
Business
1 answer:
vaieri [72.5K]3 years ago
8 0

Answer:

5.61 years

Explanation:

Let the Present value be 'x'

Data provided in the question:

Future value = \frac{3}{4}x

Inflation rate, i = 5% = 0.05

Now,

Using the compounding

let number of years be n

thus,

Future value = Present value × [ 1 - inflation rate ]ⁿ

\frac{3}{4}x = x × (1  - 0.05)ⁿ

or

0.75 = 0.95ⁿ

on taking log on both the sides , we get

or

log(0.75) = n × log(0.95)

or

-0.125 = n × (-0.0223)

or

n = 5.61 years

or, n = 11.89 years

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The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inver
Elan Coil [88]

Answer:

takes on the shape of an inverted U so related diversification has the best performance.

Explanation:

A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.

The portfolio variance is given by the equation;

Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}

Where;

w_{n} = the weight of the nth security.

d^{2}_{n} = the variance of the nth security.

C_{OV_{1, 2}} = the covariance of the two security.

The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.

4 0
3 years ago
Consider a firm that operates in a perfectly competitive market. Currently the firm is producing 50 units of output and at that
Norma-Jean [14]

Answer:

$450

Explanation:

Data given in the question

Number of the units produced is 50 units

Marginal revenue is $6

Now the output increase by 50%

So, the total revenue is

= Number of units produced × marginal revenue + increased output percentage × (Number of units produced × marginal revenue)

= 50 units × $6 + 50% of $300

= $300 + $150

= $450

We simply compute by applying the above information

6 0
3 years ago
A profit-maximizing firm in a competitive market is able to sell its product for $7. At its current level of output, the firm's
ser-zykov [4K]

Answer:

d. loss of exactly $27.

Explanation:

Under a competitive firm, a profit-maximizing firm level of output can be find out by equating the marginal revenue with its marginal cost i.e

Marginal revenue = Marginal cost

As we know that

Average total cost = Total cost ÷ Quantity

$10 = Total cost ÷ 9

So, the total cost is

= $10 × 9

= $90

And,

Total revenue = Price  ×  quantity

= $7 × 9

= $63.

So,

Profit = Total revenue - total cost

= $63 - $90

= -$27

This amount comes in a negative which reflects that there is a loss of $27

4 0
3 years ago
Deforestation can significantly reduce the amount of water vapor in the atmosphere. see section 12.16 (page) . true false
egoroff_w [7]

It is a true statement that a deforestation can significantly reduce the amount of water vapor in the atmosphere

<h3>What is a Deforestation?</h3>

It refers to the purposeful clearing of forested land. The forests can be razed to make space for agriculture and animal grazing and to obtain wood for fuel, manufacturing, and construction.

Hence, the deforestation reduces the amount of transpiration and can significantly reduce the amount of water vapor in the atmosphere because each time chemical energy is passed from one trophic level to another, most of the energy is lost as heat.

Read more about deforestation

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5 0
1 year ago
While setting the price of a product, what must managers consider? A cost of the whole marketing mix B) buying capacity of the c
Naddik [55]

Answer:

While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company

Explanation:

Key factors in calculating the sale price can be:

  • Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
  • Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
  • Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;

Cost-based pricing has its sub-methods such is Cost plus method

The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.

Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.

Formula: price = Direct costs + Indirect costs + Rate of profit

5 0
3 years ago
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