Answer:
Profit Maximising Quantity = 775
Explanation:
Price P = 35 - 0.02Q
Total Revenue TR = Price x Quantity = P X Q
= (35 - 0.02Q)(Q) = 35Q - 0.02Q^2
Total Cost TC = 8000 + 4Q
Profit = TR - TC
[35Q - 0.02Q^2] - [8000+4Q] = 35Q - 0.02Q^2 - 8000 - 4Q
Profit Function = - 0.02Q^2 + 31Q - 8000
To find out profit maximising Quantity , we will differentiate Profit Function with respect to Q & equate it to 0.
dTR/ dQ = -0.04Q + 31 = 0
Q = 31/0.04 = 775
To verify whether 775 is profit maximising Q, we will do second derivative & check that it is negative.
d^2TR/ dQ^2 = -0.04 i.e < 0 (negative)
So 775 is profit maximising quantity
Answer:
Warby Parker is an eye glass manufacturing company, that manufacturers designer glasses that are cost effective. The management of Warby Parker believes that it's operations must be grounded in Cooperate Social Responsibility
Explanation:
Warby Parker is an eye glass manufacturing company, that manufacturers designer glasses, that are cost effective. The management of Warby Parker believes that it's operations must be grounded in Cooperate Social Responsibility
Answer:
4. general partnership.
Explanation:
A general partnership is when at least two people come together to form a business. These partners would have unlimited liabilities.
A sole proprietorship is A form of business owned by one person who has unlimited liabilities.
A corporation is a a form of business owned by many people known as the shareholders. The shareholders have limited liability.
A limited liability company is owned by at least two partners that have a limited liability.
A limited partnership is a type of partnership with two types of partners- the limited partner and the general partner. The limited partner has limited liability and he is not involved in the daily running of the business while a general partner has unlimited liabilities and she is involved in the daily running of the business.
I hope my answer helps you
Answer:
Please kindly go through explanation for the answers.
Explanation:
A)The required return if Beta is 2 = 0.06+0.08*2 =0.22
B)Here Rf = 0.06
Expected return of the portfolio = 0.4*22% + 0.6*6% =12.4%
since beta of Rf = 0,the expected beta = 0.4*2 = 0.8
C)Beta is nothing but systematic risk of a security in comparing to the market. In this case stock z having beta of 1.5 which is less than beta of stockX i.e 2. and expected return is 15%.so stockz is offering lower return at lower risk. If the investor is a risk averse its a good buy.
D) let W be portion of stock X.
Then w*2 + (1-w)*0 = 1.5
W = 1.5/2 =0.75
to construct a portfolio which has a beta of 1.5 we have to invest 75% of our money in stock X and remaining in risk free asset
E) expected return = 0.22*.75 +0.25*0.06 = 16.5% + 1.5% = 18%
