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Ber [7]
3 years ago
8

What are the two constraints that firms face while trying to maximize profits?

Business
1 answer:
Morgarella [4.7K]3 years ago
3 0
<span>Law of supply and law of demand</span> are the two constraints that firms face while trying to maximize profits. This is because it is not always the same. People's needs and wants changes through time. ANd not all the times the supply suffice the demands of the consumers.
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According to the Capital Asset Pricing Model (CAPM), correctly priced securities:
miskamm [114]

Answer:

A) have zero alphas

Explanation:

Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.

This is why the CAPM model only considers beta in its calculation.

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Answer:

Right

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3 years ago
What is the cheif reason why a person would become a supervisor?
sesenic [268]
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7 0
4 years ago
Read 2 more answers
Which of the following strategies is represented by McDonald’s experimenting with their traditional menu, as well as changing th
Harman [31]

Answer:

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In Japan. The company’s ad campaigns are widely different. The Japanese ads are focused on adults as well as children, with some features that are unique to the locale’s culture.

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3 years ago
Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets:__________
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Answer:

A: Demand of euros in foreign market.

B: Supply of Euros

C: Demand of Euros

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E: Supply of Euros

F: Demand of Euros

G: Supply on Euros.

4 0
3 years ago
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