Investment includes all expenditures on new plant and equipment plus changes in business inventories.
Given that expenditure is done on new plant and equipment plus changes in business inventories.
We are required to find the name of the term that includes all the expenditures given in question.
The correct term which includes the expenditures on new plant and equipment plus changes in business inventories is investment.
Investment includes all those expenditures which are done in order to get benefit in future.In our question the expenditure on new plant and equipment plus changes in business inventories increases the productivity of the company.
Hence expenditures on new plant and equipment plus changes in business inventories defines investment.
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Answer: The correct answer is "a. $26,000".
Explanation: Implicit costs: Also known as opportunity costs have to do with alternative profit options, or money that we no longer receive when performing certain commercial actions.
A person incurs implicit costs when he waives an alternative action.
Implicit costs: $20000 + $6000 = $26000.
Answer:
Portfolio beta =0.7467
Explanation:
Weight of each asset = 100% / 3 = 33.33%
Portfolio beta = Respective beta * Respective weight
Portfolio beta = (1/3*0.91)+((1/3*1.33)+(1/3*0)
Portfolio beta = 0.746666666
Portfolio beta = 0.7467
Hence, the beta of the portfolio 0.7467.
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Answer:
The mayor thinks demand is inelastic, and the city manager thinks demand is elastic.
Explanation:
- Inelastic demand is when there is no noticeable change in product demand as the price of the product changes drastically. This type of environment is seen when there are no good substitute for the product.
- Elastic demand is when a slight change in product price changes the market demand for the product. This occurs when there are substitutes.
- Here, the mayor thinks there is inelastic demand and the city manager thinks the demand is elastic.
