All categories

2 years ago

1. The giving up of one benefit or advantage in order to gain another regarded as more favorable.

Business

1 answer:

Serjik [45]2 years ago

7 0

Answer:

1. Trade off

2. Opportunity cost

3. Cost-benefit analysis

4. Diminishing marginal utility

Explanation:

1. Giving up one benefit or advantage to gain another regarded as more favorable is called trade-off. Every economic decision involves some trade-off.

2. Opportunity cost is the second-best alternative or value of the alternative, that must be given up when making a choice. Because of scarce resources with alternative uses allocation of resources involves some opportunity cost.

3. Cost-benefit analysis can be defined as the process of examining the benefits and costs of each available alternative in arriving at a decision. Resources are allocated efficiently if the cost incurred and benefit earned is equal.

4. As we go on increasing the quantity consumed of a product, the marginal utility or satisfaction earned from its consumption goes on decreasing. This is called diminishing marginal utility.

You might be interested in

A product-process matrix can be used to address the fact that customers often participate in service processes.

dimaraw [331]

A product-process matrix can be used to address the fact that customers often participate in service processes.

This is FALSE.

A customer is a recipient of goods, services, products, or ideas obtained from a seller, vendor, or supplier through financial transactions or in exchange for money or other valuable consideration.

A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.

The definition of customer is a person who purchases products or services at a store, restaurant, or another retail establishment. An example of a customer is someone who goes to an electronics store and buys a television. (informal) A person, especially a person, who interacts with others in some way.

Learn more about customer here:brainly.com/question/12831236

#SPJ4

6 0

10 months ago

An investment advisor has a client base composed of high net worth individuals. In her personal portfolio, the advisor has an in

e-lub [12.9K]

Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.

Explanation:

The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.

She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.

3 0

2 years ago

Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli

Delvig [45]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

Risk free rate of return = 7%

Market rate of return = 14%

And, the beta is 0.5

So the expected return is

= 7% + 0.5 × (14% - 7%)

= 7% + 0.5 × 7%

= 7% + 3.5%

= 10.5%

4 0

2 years ago

Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansio

enyata [817]

Answer:

The correct answer is letter "D": Wal-Mart employed a preemptive strategy.

Explanation:

Game Theory is a branch of Economy that studies the decisions in which an individual could succeed if he or she takes into account the decisions of the rest of the participants involved in the event. Game Theory has also been applied for subjects such as Mathematics, Managements, Psychology or even Biology.

In the game theory, the Preemptive Strategy is implemented when individuals take a step before other participants in an attempt of having a favorable outcome of the situation. They lead the event using creativity. Thus, Wal-Mart used the preemptive strategy by opening stores in small towns that supported only one discount store.

8 0

2 years ago

Jane transferred a piece of real estate to her son Christopher 6 months ago. Jane purchased the real estate for $90,000 six year

goldenfox [79]

Answer:

c. Christopher will have a dual basis for income tax purposes.

Explanation:

Due to the fact that the basis of Jane in the specific property was higher than the FMV of the property on the specific date that she gave out the property, therefore, the double basis principle will apply to Christopher. In addition, Christoper will not collect any additional basis for the tax paid on the gift. The correct answer is option c.

7 0

2 years ago