Answer:
$1.0391
Explanation:
The question is asking for the calculation of the present value of a future sum.
First, the Future Value = $120,000 = FV
The number of years to achieve the value is = 23 years = N
and the earning interest rate per year is 66%= r
Based on these information, the formula for calculating the future value is as follows:
FV / (1/ (1+ r)∧)n)
Using the formula, we have the following:
$120,000/ [1/(1+0.66)∧23]
$120,000 /(1/115474.48258)
$120,000/ (0.0000086599)
=$1.0391
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Answer: The the minimum price that would induce this company to produce the 601st heart rate monitor is <u>$70</u>.
Explanation: The marginal cost of producing one more unit is equal to 30070 - 30000 = 70.
A company produces to the point where the price is equal to the marginal cost. In other words, the cost of producing one more unit does not exceed the benefit to be obtained from the sale of one more unit.
Answer:
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Explanation:
According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,
price = $8.10
avg variable cost = $8.00
avg total cost = $8.25
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Answer:
B) The stock market exhibits informational efficiency.
Explanation:
There are 2 identifiable ways to manage a portfolio. Active management is explained by Musashi way of investing in which she thinks there may be opportunities that can be exploited by a portfolio manager and she is willing to pay a fee in order to benefit from those opportunities. On the other hand, Rina thinks that markets are efficient and there is no incentive to pay extra, this is called Passive investing. Passive investing usually tracks an index and it is rebalance periodically according to previously known rules.