Answer: 10000 units
Explanation:
First, we've to determine the equilibrium price which will be gotten when we equate the demand to the supply which will be:
20000 - 100P = 100P
100P + 100P = 20000
200P = 20000
P = 20000/200
P = 100
Since Q = 100P
Q = 100 × 100
Q = 10000
The competitive firm will produce 10000 units to maximize profit.
Answer:
currency offset
Explanation:
In simple words, An alternative means taking an opposing part in the stock markets in comparison to an initial starting position. In company, an offset may relate to the situation where damages arising from one business segment are compensated for by profits from another.
Within the financial markets, a investor joins an analogous, but contrary, contract to cover a futures contract that excludes the actual underlying delivery obligations. Thus, we can conclude that the given case illustrates offset settings.
Answer:
Beta is 1.8
Explanation:
CAPM or capital asset pricing model is used to compute expected return on stock by establishing relationship between expected returns and systematic risk (also called beta).
Given:
Return on mutual fund = 14%
Risk free rate (Rf) = 5%
Market return (Rm) = 10%
Risk premium = Rm - Rf
= 10% - 5%
= 5%
CAPM formula:
Returns = Rf + β(Rp)
14% = 5% + β(5%)
β = 9 / 5
β = 1.8
Beta of mutual fund is 1.8
The best way to handle that is to <span>Make a list of all of the questions that the borrower has at the end of the signing then have them contact the borrower for answers.
Doing this will make them able to prepare the answers beforehand and distinguish between which information they are allowed to give and which one to held.</span>
Answer:
8.6 billion
Explanation:
The best way to solve this exercise is to understand the theoretical relationships that exist between the concepts.
Let us start with the most important one: The marginal propensity to consume, defined as that proportion of the increase in income that the consumer allocates to the consumption of goods and services, rather than saving it. Mathematically, it is described as the change in consumption divided by the change in income.
A higher marginal propensity to consume means that there is more spending in the economy, which in turn increases the GDP. Therefore, in order to understand changes in GDP we must to apply the understand the marginal propensity to consume.
However, this concept alone does not tell us how much GDP will increase, for this we must resort to the concept of multiplier effect, which is defined as:
According to the statement the MPC = 0.65, therefore the multiplier is:
Consider the multiplier as the lever that drives economic growth. We already know the capacity of that lever (2.8571), now to know exactly how much GDP will change thanks to its actions, what we do is multiply it by the increase in aggregate expenditures (3 billion).
Therefore: