Answer:
Inelastic
Explanation:
In the given question,the cost to produce the toothpaste has increased, which led to the increase in the price of the toothpaste significantly. But there is no change in the demand of the toothpaste.
Hence, this product is inelastic.
In the inelastic demand, the demand of the product does not change with any variation in the price of the product.
Answer:
$5,000
Explanation:
Given that,
Accounting profit = $10,000
Interest rate = 5%
Amount withdraw = $100,000
The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.
Accounting profit is determined by subtracting explicit costs from the total revenue.
Accounting profit = Total revenue - Explicit costs
Economic profit:
= (Total revenue - Explicit costs) - Implicit costs
= $10,000 - (Interest income)
= $10,000 - (5% × $100,000)
= $10,000 - $5,000
= $5,000
Answer:
The expected return on the portfolio is 14.19%.
Explanation:
This problem require us to calculate the expected return on entire portfolio. The expected return on every stock that will be the part of portfolio is given in the question and their weightage in portfolio is also provided in the problem.
We can easily calculate the expected return using following weightage average formula.
ER portfolio' = WA * ERA + WB * ERB + WC* ERC
<em>' WA = Weightage of stock in portfolio</em>
<em>ERA = Expected return on stock A</em>
= 20% * 3.7 + 30% * 14.5 + 50* 18.2
= 14.19%
Answer:
$20.52
Explanation:
Given that
Estimated dividends for next period = $3.90
Required rate of return = 25%
Growth rate = 6%
The computation of Price of stock is given below:-
Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)
= $3.90 ÷ (0.25 - 0.06)
= $3.90 ÷ 0.19
= $20.52
Therefore for computing the price of stock we simply applied the above formula.
Answer:
Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.