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Nitella [24]
3 years ago
11

1. A firm in a competitive market has the following cost structure: Output Total Costs 0 $10 1 $12 2 $15 3 $19 4 $24 5 $30 6 $37

7 $46 8 $55 9 $65 If the market price is $8, how many units should the firm produce to maximize profit? a. 5 units b. 6 units c. 7 units d. 8 units
Business
1 answer:
iogann1982 [59]3 years ago
3 0

Answer:

b. 6 units

Explanation:

Output     Revenue  Costs = Profit  ( Revenue - Costs)

   0                   0         10 =  -10

   1                    8         12 =  -4

   2                   16        15 =   1

   3                   24        19 =   5

   4                   32        24 =   8

   5                   40        30 =   10

   6                   48         37 =   11

   7                   56        46 =   10

   8                   64        55 =   9

   9                   72        65 =    7  

Note: The revenue is calculated by multiplying output by the market price of $8.

The firm should produce 6 units to maximize their profit which is $11.

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6 0
3 years ago
A Deductible is what
Artyom0805 [142]
B the amount of loss you pay 
 
8 0
3 years ago
What is the current value of a future sum of money called?
Mashcka [7]
It seems that you have missed the necessary options for this question, but anyway, the correct answer for this would be PRESENT VALUE. The current value of a future sum of money is called a present value. Hope this is the answer that you are looking for. Have a great day!
4 0
3 years ago
Anna wants to take seven days off from her job as an accountant to observe a religious holy week. Her employer is reluctant to a
dimaraw [331]

Answer: They must grant the leave only if it amounts to a reasonable accommodation

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Based on the information given in the question, they must grant the leave only if it amounts to a reasonable accommodation.

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4 0
3 years ago
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 9.1% and 12.
podryga [215]

Answer:

A.) ALPHA

Portfolio A = 8.5%

Portflio B = 13.5%

B.) Sharpe measure

Portfolio A = 0.1519

Portflio B = 0.1479

Explanation:

T- bill rate (Rf) =5%

S&P 500 index ( Rm) = 10%

Portfolio A;

Expected rate of return = 9.1%

Beta (B) = 0.7

Standard deviation (s) = 27%

Portfolio B;

Expected rate of return = 12.1%

Beta (B) = 1.7

Standard deviation = 48%

Required rate of return for both portfolios;

Rf + B × (Rm - Rf)

Portfolio A :

5% + 0.7 ×(10% - 5%) = 5% + 0.7 × (5%)

5% + 3.5% = 8.5%

Portfolio B :

5% + 1.7 ×(10% - 5%) = 5% + 1.7 × (5%)

5% + 8.5% = 13.5%

A) Alpha(A) of Portfolio A and B ;

A = Expected return - Required return

Alpha of portfolio A :

9.1% - 8.5% = 0.6%

Alpha of Portfolio B:

12.1% - 13.5% = - 1.4%

B.) Sharpe measure for portfolio A and B;

Sharpe ratio = (Expected rate of return - Rf) / s

Portfolio A = (9.1% - 5%)/27% = 0.1519

Portfolio B = (12.1% - 5%)/48% = 0.1479

I will choose Portfolio A

8 0
3 years ago
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