Answer:
a, Coefficient of variation
= <u>Standard deviation</u> x 100
Mean
b, Coefficient of variation
Asset A
Coefficient of variation
= <u>$23.48</u> x 100
$181.92
= 12.91%
Asset B
Coefficient of variation
= <u>$0.09</u> x 100
$0.38
= 23.68%
Asset C
Coefficient of variation
= <u>$27.31 </u> x 100
$247.19
= 11.05%
Asset C is least volatile while Asset B is most volatile
Explanation:
Coefficient of variation is the ratio of standard deviation to mean (expected return) multiplied by 100. It is used to measure the volatility of assets. Asset C has the least coefficient of variation, thus, it is the least volatile. Asset B has the highest coefficient of variation, which implies that it is the most volatile.
Answer: The law of demand
Explanation:
The tabular representation (demand schedule is down below)
Price of Juice (Dollars per can) Quantity Demanded(Billions of can)
2000 0.5
1500 0.75
1000 1
750 1.25
From the table above and the graphical representation attached, <u>the law of demand</u> is confirmed. The law of demand states that the price of a good and the quantity demanded are inversely proportional.
Notice that when the price of the juice increases, the demand decreases and when the price decreases, the demanded increases. This shows that majority of consumers will be more willing to make purchases when there is a decrease in price.
Check the attachment for the graphical representation.
Answer: (d.)The bakery faces a flat demand curve.
Explanation:
The bakery faces a flat demand curve because a firm in a perfectly competitive market is a price taker and the demand curve for a firm is equal to the price the supply curve is a part of Marginal cost above Average variable cost , so the supply curve is upward sloping
. The bakery is in the perfectly competitive market so it can earn positive, negative or zero economic profit in the short run and zero economic profit in the long run.
Answer:
$1,059,050
Explanation:
The computation of the anticipated level of profits for the expected sales volumes is shown below:
Expected sales 209,000 305,000
Particulars Chicken Fish
Sales $815,100 $1,525,000
Less:
Variable cost -$407,550 -$762,500
Contribution margin $407,550 $762,500
Now the profit would be
= Total contribution margin - total fixed cost
= $407,550 + $762,500 - $111,000
= $1,059,050
The sales are variable cost are come by multiplying the units with its price per taco.
