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IceJOKER [234]
3 years ago
12

27. Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curve

s have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape
Business
2 answers:
jasenka [17]3 years ago
6 0

Answer:

Explanation: Both the marginal cost curve and the average variable cost curve are U-shaped. For many firms, this is true because their production exhibits increasing returns at low levels of output and decreasing returns at high levels of output. At the minimum of average cost, the marginal cost curve intersects the average cost curve. This is because when marginal cost is above average cost, average cost is decreasing and when marginal cost is below average cost, average cost is decreasing.

Nana76 [90]3 years ago
4 0

Answer:

Explanation:

The economic theory that focuses on the average and marginal cost explains that, the average and marginal cost curves have the same general shape because,

The average cost curve depends directly on the marginal cost curve, since rising marginal costs must necessarily increase average costs, and falling marginal cost will also decrease average cost but the average cost will never enter the negative region.

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Which amendment to the United States Constitution provides that all powers that the Constitution neither gives exclusively to th
-BARSIC- [3]

Answer:

10th amendment

Explanation:

The Tenth Amendment specifically grants those rights to the States that the Constitution neither assigns to the federal government nor forbids the Member States. The Tenth Amendment doesn't really place any clear restrictions on the power of the federal government, although an effort has been made to do so.

6 0
3 years ago
Million dollar question. does money equal happiness? Explain with a paragraph
aliina [53]
It depends on the person I would definitely be happy but that’s just me
4 0
2 years ago
7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate i
Vadim26 [7]

Answer:

The correct answer is option (A).

Explanation:

According to the scenario, the computation of the given data are as follows:

First, we will calculate the Market risk premium, then

Market risk premium = (Required return - Risk free rate ) ÷ beta

= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%

So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk

Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65

= 0.5676 + 0.2986

= 0.8662

By putting the value, we get

Required rate of return = 4.20% + 0.8662 × 5.048%

= 8.57%

4 0
3 years ago
If the Fed conducts open-market purchases, the money supply A. decreases and aggregate demand shifts right. B. increases and agg
Nataly_w [17]

If the Fed conducts open-market purchases, the money supply increases and aggregate demand shifts right.

Answer: Option B

<u>Explanation:</u>

With the Fed conducting an open market purchase, the people will sell of the securities that they possess. In return they will get money from the fed for the purchases that it makes. With the increase in the supply of money in the economy, there will be more demand by the people in the economy.

Therefore the aggregate demand curve will shift to the right direction showing more demand of the goods and services by the people in the economy.

4 0
2 years ago
State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .32 − .11 Boom .68 .23 Calculate the e
butalik [34]

Answer:

1) Expected return is 12.12%

2) Portfolio beta is 1.2932

Explanation:

1)

The expected return can be calculated by multiplying the return in a particular state of economy by the probability of that state occuring.

The expected return = (0.32 * -0.11) + 0.68 * 0.23

Expected return = 0.1212 or 12.12%

b)

The portfolio beta is the the systematic riskiness of the portfolio that is unavoidable. The portfolio beta is the weighted average of the individual stock betas that form up the portfolio.

Thus the portfolio beta will be,

Portfolio beta = 0.33 * 1.02 + 0.2 * 1.08 + 0.37 * 1.48 + 0.1 * 1.93

Portfolio beta = 1.2932

4 0
3 years ago
Read 2 more answers
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