Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.
Answer: the loss of potential gain from other alternatives when one alternative is chosen
Explanation:
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Answer:
The firm's profits if it charges the two prices as mentioned above = $ 1425
Explanation:
P.S - The exact question is -
Proof -
we calculate the profits individually for 2 different prices:
When price = $75:
Quantity sold = 15 units
Total revenue = 15 × 75 = $1125
Total cost = Marginal cost × quantity
= 20 x 15 = $ 300
⇒Total cost = $300
So,
Profit = 1125 - 300 = $825
When price = $35 :
Quantity sold = 55 - 15 (quantity purchased at price = $75)
⇒Quantity sold = 40
Total revenue = 40 × 35 = $1400
Total cost = Marginal cost × quantity
= 20 x 40 = $ 800
⇒Total cost = $800
So,
Profit = 1400 - 800 = $600
Now,
Total combined profit = 825 + 600 = $1425
∴ we get
The firm's profits if it charges the two prices as mentioned above = $ 1425
Answer:
The correct answer is letter "B": engage in risky business endeavors in order to accumulate future wealth.
Explanation:
Property rights represent the ownership individuals and organizations have on determined goods. In the case of businesses, the firm must know what assets, trademarks, and patents it has to project the profits that can be made and find out the resources that might be necessary to hit those goals. As long as the property of a company is wider, the institution could take more risk since it will have a cushion in case the venture does not provide the returns expected.