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Alex777 [14]
3 years ago
5

Jorge considers himself a risk-averse person. He takes the opportunity to switch to a new job where there are two possible outco

mes: there is a 20% chance that he will earn $30,000 more per year than in his current job, and there is an 80% chance that he will get laid off and end up in a job where he is earning $10,000 less than in his current job. What does this decision tell us about Jorge?
Business
1 answer:
Lunna [17]3 years ago
5 0

Answer:

Jorge is not risk-averse

Explanation:

Risk averse means to reluctant to take risk

Since theres a 80% chance that Jorge will get laid off and end up with a job that will pay him $10000 less is very risky instead where he'll earn $30000 where the chance is 20% that he'll get the job.

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The following units of an inventory item were available for sale during the year. Beginning inventory 10 units at $55 First purc
Sphinxa [80]

Answer:

$1,375

Explanation:

Given the information above, the Ending inventory = Units available - Units sold

Units available = 10 + 25 + 30 + 70 = 80

Units sold = 60

Ending inventory = 80 - 60

Ending inventory = 20

Cost of ending inventory under FIFO

= (15 × $70) + (20 - 15) × $65

= $1,050 + $325

= $1,375

Therefore, the ending inventory cost using FIFO is $1,375

5 0
3 years ago
Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end expone
vlabodo [156]

Answer:

21

Explanation:

Given that:

The utility function U(x, y) = x^{0.8} y^{0.2}

The budget line income is:

105=4x +3y

The equation MRTS is:

\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}

where;

MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}

MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}

and:

P_y= 3

P_x = 4

∴

Using the equation MRTS:

\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}

\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}

\dfrac{4y }{x} = \dfrac{4}{3}

4x = 12y

x = 12y/4

x = 3y

Replacing the value of x into the budget line income, we have:

105 = 4x + 3y

105 = 4(3y) + 3y

105 = 12y + 3y

105 = 15y

y = 105/15

y = 7

Then, from x = 3y

x = 3(7)

x = 21

Thus, she will consume 21 gapefruits

5 0
2 years ago
A change in price will lead to a change in __________ and to a change in __________, while a change in government subsidies will
Sauron [17]

Answer:

quantity demanded; quantity supplied; supply; demand

Explanation:

When there is a change in price of goods, this change will lead to quantity demanded and it will also lead to a change in the quantity supplied. According to the law of demand, an increase in price will lead to a decrease in quantity demanded and vice-versa.

When there is a change in government susidies, this change will lead to a change in supply, and a change in the number of buyers will lead to a change in demand.

Therefore, the correct statement is:

A change in price will lead to a change in quantity demanded and to a change in <em>quantity supplied,</em> while a change in government subsidies will lead to a change in supply and a change in the number of buyers will lead to a change in demand.

7 0
3 years ago
Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 20
makkiz [27]

Answer: See explanation

Explanation:

a. What are the amount and nature of Dennis’s loss upon closing the short sale?

Sales consideration = $100 × $152 = $15200

Less: Closing Value of Short sales = 100 × $190 = $19000

Short term capital loss = $3800

b. When does the holding period for the remaining 100 shares begin?

The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.

c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Sales consideration = 100 × $27 = $2700

Less: Base value = $19000

Short term capital loss = $16300

4 0
3 years ago
Although hargrove co. makes enough money to pay for everything it needs, it still chooses to have some debt and pay a larger por
lisov135 [29]
The best explanation for this decision is "financial leverage".

Financial leverage refers to the amount of debt that is used by an entity to purchase more resources. Leverage is utilized to abstain from utilizing excessively value to support operations. An intemperate measure of money related use expands the danger of disappointment, since it turns out to be more hard to repay debt.
6 0
3 years ago
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