Solution :
The risk averse is the person who wishes to reduce the uncertainty attached to the money.
Certain income = $2000.
50-50 chance of 1000 and 3000 would income expected income of
(0.5 x 1000) +(0.5 x 3000) = 2000
Both of them gives an equal amount of income while there is uncertainty attached with the second case which makes the risk averse person disincline to follow.
Hence the statement is FALSE.
Assume that the population level in a country is X. 5 percent of the population are likely to get affected by the disease due to which it makes a population of 0.05 X population to be effected by the disease. The population level will cost $38,000, hence making the total healthcare cost to be 1900 X.
Answer:
D. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Explanation:
Positioning simply consists in establishing a specific market position for the product or service relative to the products or services that the competition offers.
For example, Wal-Mart has found that its most effective positioning strategy is to occupy the market place of the cheapest retail store. Wal-Mart does not try to appeal to everyone, it tries to offer the cheapest products in the market (which in itself has a very wide appeal, but the appeal is not universal anyway).
Vary in total in direct proportion to changes in the activity level. As this cost increase or decrease, the output level.
<h3>What is the
variable cost dependency?</h3>
Variable costs are proportional to output, resulting in a fixed sum per unit produced. It indicates that when more products are manufactured, variable costs will rise; conversely, if fewer products are manufactured, variable costs will fall.
Thus, option C is correct.
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McDonald’s requires $750,000 in cash or liquid assets, a $45,000 initial fee, plus a monthly service fee based on the restaurant’s sales performance and rent.
Explanation:
According to McDonald's, total project expenditures, including construction costs and upgrades, vary from $1 million to $2.2 million. The number is determined by the restaurant geography and scale and the preference of kitchen equipment, branding, design style and landscaping.
McDonald's charges a franchisee premium of $45,000 and a monthly service rate equivalent to 4% of gross sales. Franchisees also have to pay rent, a proportion of the monthly sales to the client.
The International Union of Service Employees estimates that franchisees pay an average of 10.7% of revenue in rental costs.
The startup costs for McDonald's franchisee are like those of KFC, Wendy and Taco Bell.
