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2 years ago

True or false: allocative efficiency is achieved by equalizing consumer surplus and producer surplus

1 answer:

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<span>THE EFFICIENT ALLOCATION OF LIMITED RESOURCES MOSTLY BEING FACTORS OF PRODUCTION TO COMPLETE A TASK. SO ALLOCATION EFFICIENCY PLAYS A VITAL ROLE TO ACHIEVE AND BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS . IT IS TRUE THAT ALLOCATION EFFICIENCY IS ACHIEVED BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS.</span>

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Stock r has a beta of 1.5, stock s has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free

masha68 [24]

Answer:

4.5%

Explanation:

The formula to compute the expected rate of return under the CAPM model is shown below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For stock r, the required rate of return is

= 7% + 1.5× (13% - 7%)

= 7% + 1.5 × 6%

= 16%

For stock s, the required rate of return is

= 7% + 0.75× (13% - 7%)

= 7% + 0.75 × 6%

= 11.5%

So, the difference of required rate of return is

= 16% - 11.5%

= 4.5%

The Stock R has high riskier stock whereas the stock S has less riskier stock due to beta

6 0

2 years ago

Diehl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following d

photoshop1234 [79]

Answer:

$84,000

Explanation:

The computation is shown below:

Particulars Order Size Customer support Other Total

Manufacturing overhead $24,000 $408,000 $48,000 480000

Selling and administrative

expenses $60,000 $20,000 $20,000 $100,000

Total $84,000 $428,000 $68,000 $580,000

The allocation of manufacturing overhead is done in 5% 85% 10% 100%

The allocation of selling and administrative expense is done is 60% 20% 20% 100%

4 0

2 years ago

Lacey owns a bakery in Dallas. She read online that the homeland security threat level has been increased due to anticipated ter

Nostrana [21]

Answer:

True

Explanation:

In the given statement, it was stated that there was a briefing online about the possibility of terrorist activities. She read the news and understood its meaning. The insurance company is also aware of the news online. Therefore, the insurance company will not take any responsibility for the losses that might occur while she opens her shop.

6 0

2 years ago

Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in

Alex17521 [72]

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the value of cost what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples on the 3 acres and 60 oranges at on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

7 0

3 years ago

Which is a helpful resource for you during the process of buying a home? A. Realtors B. Local programs C. Government programs D.

Klio2033 [76]

Answer:

A. Realtors

Explanation:

A realtor is a professional who helps clients buy and sell properties. Realtors are registered by the National Association of Realtors (NAR) and licensed to practice by their local authorities.

Realtors work for real estate companies. They may be real estate agents, salespeople, residential and commercial real estate brokers, property managers, or appraisers. Since they are recognized by law, and their work revolves around properties, realtors stand in a better position to assist someone buying a house.

3 0

2 years ago