Here is the correct order of investments from Lower Risk to Higher Risk: <span> Treasury bond − Diversified mutual fund – Stock
Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.
Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments
Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.
</span>
The answer is <span>The start-up costs in a monopolistically competitive industry are low.</span>
Answer:
The above entry would decrease stockholders' equity by $10,000 and increase the liabilities by $10,000.
Explanation:
Consultation expense is an expense and when the expense gets debited, it refers to expense being incurred which in turn decreases stockholders' equity. Accounts payable is a liability and crediting accounts payable increases the liability.
Answer:
the question is incomplete:
It happens that the set of consumption bundles (xA,xB) such that Charlie is indifferent between (xA,xB) and (20,5) is the set of all bundles such that xB = 100/xA. The set of bundles (xA,xB) such that Charlie is just indifferent between (xA,xB) and the bundle (10,15) is the set of bundles such that xB = 150/xA.
I also found the attached graph.
The requirements are:
- Is (30,5) ≈ (10,15) true or false?
- Is (10,15) > (20,5) true or false?
- Is (20,5) ≥ (10,10) true or false?
- Is (24,4) ≥ (11,9.1) true or false?
- Is (11,14) > (2,49) true or false?
- A set is convex if for any two points in the set, the line segment between them is also in the set. Is the set of bundles that Charlie weakly prefers to (20,5) a convex set?
- Is the set of bundles that Charlie considers inferior to (20,5) a convex set?
- The slope of Charlie’s indifference curve through a point, (xA,xB), is known as his ______________ ___ of ___________ at that point.
- Find Charlie’s marginal rate of substitution at the point (10,10).
- Find Charlie’s marginal rate of substitution at the point (5,20).
- Find Charlie’s marginal rate of substitution at the point (20,5).
- Do the indifference curves you have drawn for Charlie exhibit diminishing marginal rates of substitution?
Answers:
- true, they are on the same red line
- true, (10,15) is on the red line while (20,5) is on the blue line
- true, they are equivalent since both are on the blue line
- false, (11,9.1) is on the blue line and (24,4) is on the red line
- true, (11,14) is on the red line while (2,29) is on the blue portion
- yes, it is a convex set
- no, they are not a convex set
- The slope of Charlie’s indifference curve through a point, (xA,xB), is known as his <u>RATE</u> of <u>SUBSTITUTIO</u>N at that point.
- marginal rate of substitution at (10,10) = -10/10 = -1
- marginal rate of substitution at (5,20) = -20/5 = -4
- marginal rate of substitution at (20,5) = -5/20 = -1/4 = -0.25
- yes, this curves shows diminishing marginal rates of substitutions, e.g. goes from -4 to -1 to -0.25