Answer:
The correct answer is: zero; zero.
Explanation:
If a monopolist discovers a way to perfectly discriminate, it means that the monopolist will charge equal to the willingness to pay from each consumer.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Since each consumer is paying price equal to its willingness to pay, the consumer surplus will be zero.
There will be no efficiency costs. The monopolist will sell output where the maximum price the consumer is willing to pay is equal to or greater than the marginal cost. So all efficient trades will occur, there will be no efficiency costs.
If this is a true/false question, the answer is FALSE. Usually creating an international division comes after some time and the international ventures have gotten a foothold in the respective country.
Answer: covariance matrix is
(0.00090 0.00042)
(0.00042 0.00160)
Mean of weekly return = 0.00119
Standard deviation = 0.0279
VaR(0.05) = $1450.73
Explanation:
> S1 = 200*100
> S2 = 100*125
> w1 = S1/(S1+S2)
> w2 = 1 - w1
> w = c(w1,w2)
> means = c(0.001, 0.0015)
> sd = c(0.03, 0.04)
> rho = 0.35
> multiply = w %*%
means> round(mutiply by 5)=0.00119
> cov = matrix(c(sd^2, sd[1]*sd[2]*rho,sd[1]*sd[2]*rho,sd[2]^2),nrow=2) = 0.00090, 0.00042, 0.00042, 0.00160
> sdp = sqrt( w %*% cov %*% w )> round(sdp,4)=0.0279
> VaR = -(S1+S2)*(mup+sdp*qnorm(.05))
=1450.73
Answer:
Here we need to find the YTM of a bond. The equation for the bond price is: P = ÂĄ87,000 = ÂĄ4,300(PVIFA R %,18 ) + ÂĄ100,000(PVIF R %,18 ) Notice the equation cannot be solved directly for R . Using a spreadsheet, a financial calculator, or trial and error, we find: R = YTM = 5.45%
Answer:
The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.
Explanation:
Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.
A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.
Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.
