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3 years ago

In the U.S., how is the deficit different than the national debt?

1 answer:

6 0

Deficit is the difference between what the government spends and what it takes in. National debt is the result of government borrowing money to cover years of deficits

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A store has been selling 100 DVD burners a week at $450 each. A market survey indicates that for each $30 rebate offered to buye

Ivanshal [37]

Answer:

a rebate of 200 dollars will generate 500 sales

with a revenue of 125,000

Explanation:

We need to maximize the total revenue which is:

TR = Price x Quantity. First we define each of these:

P = (450 - 30X)

Q = (100 + 60X)

Being X the cash rebate

We now replace this into the TR formula:

TR = P x Q = (450 -30X) (100 + 60X)

TR = -1800x2 +27,000x -3,000x + 45,000

TR = -1800x2 +24,000x + 45,000

as this is a quadratic function: a: -1,800 b = 24,000 c = 45,000

the maximum revenue will be at the vertex: -b/2a

-24,000/2(-1,800) = 6.67

now we multiply by 30: 6.67 x30 = 200 dollars

which bring 60 x 6.67 = 400 new customers

250 x (100 +400) = 250 x 500 = 125,000

7 0

3 years ago

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists o

jarptica [38.1K]

Answer: b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

Explanation:

Diversifiable risk is a risk that a particular security has or which can be seen in a certain sector. Market risk occurs when there's possibility that a particular investor will make loss due to certain factors which affects the entire market.

In the above scenario, the most likely to occur will be that the diversifiable risk of the portfolio will likely decline, but the expected market risk should not change.

It should be noted that diversification won't eliminate market risk. When more stocks are added, this brings about decline in diversification risk but market risk won't change.

5 0

3 years ago

During a recent month, Company planned to provide cleaning services to customers for per hour. Each job was expected to take ho

givi [52]

Answer: B. $1,050 more than expected.

Explanation:

The company originally planned to have revenue resulting from 30 customers and charging $30 for an estimated 33 hours.

Estimated revenue was;

= 30 * 30 * 3

= $2,700

However, in actuality, they sold to 20 more customers than estimated but only spent 2.5 hours each.

Number of customers = 30 + 20

= 50 customers

Actual revenue

= 50 * 30 * 2.5

= $3,750

Difference is;

= 3,750 - 2,700

= $1,050 more

7 0

3 years ago

Startups that find themselves trying to compete for value with large, established firms that have strong negotiating power often

Leokris [45]

Answer:

That statement is true.

Explanation:

Start ups tends to have overwhelmingly lesser capital compared to large/established firms. This means that The Large firms will be able to outperform the start ups in terms of marketing , advertising, and production efficiency.

This will make the start ups' product became less known and more expensive in the market.

Because of this, they tend to focus on the acquisition of intellectual property.

When a start up acquire the right of intellectual property, larger companies could not legally create a similar product and compete with the start up directly.

This will make the start up able to sell their products without having to worry about being outperformed by the larger companies.

6 0

3 years ago

The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 2.20 percent and on 10-year Treasury bonds is

Elanso [62]

Answer:

E(5r5) = 0.06

Explanation:

The expected rate <u><em>(which is the the projected return on a monetary investment)</em></u> on the treasury bonds at 4.05% can be calculated as seen below:

Rate on 5-year Treasury Bonds, E(r5) = 2.20%

Rate on 10-year Treasury Bonds, E(r10) = 4.05%

(1 + E(r5))^5 * (1 + E(5r5))^5 = (1 + E(r10))^10

1.0220^5 * (1 + E(5r5))^5 = 1.0405^10

1.11495 * (1 + E(5r5))^5 = 1.48738

(1 + E(5r5))^5 = 1.33403

1 + E(5r5) = 1.05933

E(5r5) = 0.05933

E(5r5) = 0.06

5 0

3 years ago