Answer:
The correct answer is letter "D": Class envy.
Explanation:
In behavioral economics, the endowment effect explains why an individual could give a higher value to an object that posses than giving a low value when the individual does not have it. The approach implies the object has symbolic importance for the individual while having it.
A good example of the endowment effect refers to a teacher that gives one of his classes' students mugs as gifts. The value of the students who received mugs was higher than the value of those who did not get one.
Answer: variable budget
Explanation: In simple words, variable budget refers to the budget statement which shows how much different costs would vary if the level of activity as per standards set increases or decreases.
These are also called flexible budget and are made on the basis of current level of output. These budgets provides flexibility to the management with respect to both best case and worst case scenarios.
From the above we can conclude that the correct answer is variable budget.
Answer:
The correct answer is option a.
Explanation:
The monthly total revenue is $5,000.
The marginal cost of producing 19th, 20th and 21st unit is $200.
Laura will earn profit if the price is able to cover marginal cost.
Total revenue is the product of price and quantity.
Price of cake when Laura produces 19 units
= 
= 
= $263.15
Price of cake when Laura produces 20 units
=
= 
= $250
Price of cake when Laura produces 21 units
=
=
= $238.09
So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.
A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B
Cost of Equity as per CAPM = rf +beta*(rm-rf)
rf = risk free rate = 2.5%
beta =1.12
rm-rf = market risk premium = 6.8%
Cost of equity = 2.5+ 1.12*6.8 = 10.116% = 10.12%
