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lutik1710 [3]
3 years ago
7

The shape of your utility function implies that you are a individual, and, therefore, you accept the wager because the differenc

e in utility between A and C is the difference between C and B. Which of the following best explain why the pain of losing $1,000 exceeds the pleasure of winning $1,000 for risk-averse people? Check all that apply. The utility function of a risk-averse person exhibits the law of diminishing marginal utility. Risk-averse people overestimate the probability of losing money. The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar. The more wealth that risk-averse people have, the more satisfaction they receive from an additional dollar.
Business
1 answer:
Blababa [14]3 years ago
3 0

Answer:

The first and third statements are correct. These statements are:

The utility function of a risk-averse person exhibits the law of diminishing marginal utility.

The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.

Explanation:

A risk-averse individual is the one who tends to avoid taking risks. In other words, such an individual prefers lower returns with known risks as opposed to higher returns with unknown risks.

The utility curve for a risk-averse individual is concave in shape. This implies diminishing marginal utility, that is, the satisfaction derived from each additional dollar gained is less than that derived from the previous dollar. Therefore, the first and third statements are both correct.

The second statement is false because risk-averse individuals do not over-estimate the probability of losing money. The fourth statement is also false because risk-averse individuals receive less satisfaction from each additional dollar, not more.

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On January 1, 2020, Levy Company issues 100 x 5% bonds with a face value of $1500, The bonds mature on December 31, 2030 and pay
JulsSmile [24]

Answer:

$150,000

Explanation:

Calculation for the amount of Cash raised for the Levy Company

Using this formula

Cash raised for Levy Company = Number of Bonds * Face value of the Bond

Let plug in the formula

Cash raised for Levy Company = 100 * $1,500

Cash raised for Levy Company = $150,000

Therefore the amount of Cash raised for the Levy Company will be $150,000

8 0
3 years ago
2) A firm sells two products. Product R sells for $20; its variable cost is $6. Product S sells for $50; its variable cost is $3
Tom [10]

Answer:

$6896551.7

Explanation:

Given the following :

Product R:

Selling price = $20

Variable cost = $6

Product S:

Selling price = $50

Variable cost = $30

Firm's fixed cost = $4, 000,000

Break-even point dollars = (Fixed cost /Contribution margin ratio)

Contribution margin : selling price - variable cost

Product R: $(20 - 6) = $14

Contribution margin ratio = ($14/$20) * 60% = 0.42

Product S: $(50 - 30) = $20

Contribution margin ratio = ($20/$50) * 40% = 0.16

Sum of contribution margin ratio for both products = (0.42 + 0.16) = 0.58

Break-even point dollars = (Fixed cost /sum of Contribution margin ratio)

= $4,000,000/0.58

= $6896551.7

3 0
3 years ago
What is the maximum amount a firm should pay for a project that will return $15,000 annually for 5 years if the opportunity cost
vampirchik [111]

Answer:

The firm should pay $46907.57 for the given project.

Explanation:

Given information:

Return = $15000 annually

Time = 5 years

Opportunity cost = 18%

The formula for payment is

PV=R(\frac{1}{OC}-\frac{1}{OC(1+OC)^t})

where, R is return, OC is opportunity cost, t is time in years.

Substitute R=15000, t=5 and OC=0.18 in the above formula.

PV=15000(\frac{1}{0.18}-\frac{1}{0.18(1+0.18)^5})

PV=46907.5653141

PV\approx 46907.57

Therefore the firm should pay $46907.57 for the given project.

8 0
2 years ago
A salesperson should focus his or her sales resources on only one individual in the buying organization.​
madam [21]

A salesperson should focus his or her sales resources on only one individual in the buying organization.

The statement is false.

Top 5 skills for a career in sales:

  • Confidence - maintaining a positive mind-set.
  • Resilience - communicating with conviction.
  • Active listening - expertise in the customers' desires.
  • Rapport building - promoting your personality.
  • Entrepreneurial spirit - chronic self-development.

The essential duty of a salesperson is selling. This responsibility consists of assembling the prospects, offering and demonstrating the goods, inducing the prospects to shop for, taking orders, and effecting income. a salesman needs to manual the customers in buying the products they want.

<em>Your question is incomplete. Please read below to find the missing content.</em>

A salesperson should focus his or her sales resources on only one individual in the buying organization.

True

False

Learn more about salesperson here: brainly.com/question/25743891

#SPJ4

3 0
2 years ago
__________ uses state-of-the-art equipment to provide people in a variety of locations the opportunity to participate interactiv
Vaselesa [24]

Answer:

videoconferencing

Explanation:

The new era of globalisation has paved the way for the new technology. Video conferencing, in the business sector, has gained a lot of popularity because it has given an opportunity for people to interact and participate interactively. It provides a high degree of channel richness, perfect quality. Video conferencing helps people to interact and communicate despite the long distance.

3 0
3 years ago
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