Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
<em>Both countries result in an expected loss so company should not expand to either of them. </em>
Answer:
I wouldn't invest.
Risk preference at least 50-50 chance of gain and loose
Explanation:
case of success the return i get is $40000
case of failure i lose $20000.
My analysis shows P40=0.3 of success
And P-20=0.7 of failure.
The probability of a loose is much bigger than the probability of a gain.
So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.
My loose accumulating to 140000
While my gain is 120000.
I can't invest
Answer: Option(d) is correct.
Explanation:
Other things remains constant, an increase in the interest rate will generally reduces the demand for loanable funds because loanable funds become more expensive for the borrowers. This increase in interest rate also shift the demand curve towards left for the loanable funds.
With increased interest rate, borrowers have to pay more for the loans. Conversely, if there is a fall in an interest rate then as a result demand for the loanable funds increases, as it will become cheaper for the borrowers.
The strategy of modern manufacturing which Adam Smith was referring to is SPECIALIZATION.
Division of labour involves the division of a production process into many stages, each of which is handled by different employees. Division of labour leads to specialization; this is because one develop expertise in any skill that one engage in continuously.
Answer:
C. Joan can raise the defense that she did not knowingly discharge fertilizer into the waterway
Explanation:
