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serg [7]
2 years ago
15

Suppose you have just landed a job near the center of a city and you now need to decide where to live. If you live close to the

city​ center, your​ round-trip commute will be 15 minutes. If you live in the distant​ suburbs, your​ round-trip commute will be 60 minutes. There are lots of workers like you who work downtown. Since there are only a limited number of apartments near the city​ center, these apartments will be allocated based on
▼
both the costs and benefits only the benefits only the costs that you face. This process is known as
▼ "more bang for your buck" differentiation optimization .
Business
1 answer:
Tomtit [17]2 years ago
6 0

Answer:

Since there are only a limited number of apartments near the city​ center, these apartments will be allocated based on  <u>BOTH THE COSTS AND BENEFITS</u>. This process is known as <u>OPTIMIZATION.</u>

Explanation:

Optimization refers to calculating the change in net benefits between alternative choices, and choosing the alternative that provides the most benefits at the lowest costs.

For example, the cost of an apartment downtown will be much higher if measured as $ per square foot, but the advantage of saving 90 minutes of travel time a day might justify the extra cost.

If you are married and have children, then the extra cost of living downtown might be too high due to the amount of space needed for the whole family, therefore, it might be cheaper to spend 90 minutes a day travelling than paying an extremely high rent.

You might be interested in
A(n)
Alex787 [66]

Answer:

Flexible manufacturing systems (FMS)

Explanation:

FMS stands for the Flexible manufacturing systems, which is described as the method of production, which is designed in order to adapt the changes in the kind and the quantity of the product which is being manufactured.

The computerized systems and the machines could be configured to manufacture the variety of the parts and handle the production changing levels.

Therefore, the FMS is the one which is a single production system that combines the CIM (Computer Integrated Manufacturing) and the electronic machines.

3 0
3 years ago
Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $74,000 at age 65, the firm will pa
photoshop1234 [79]

Answer: 0.10%

Explanation:

The following can be gotten from the question:

n = 15 years

We change it to months. Thus will be:

= 15 × 12

= 180

Present value of an annuity :

= A × {1- (1 +r ) -n ]/r}

74000 = 450 × [ 1- (1 +r) - 180]/r

r= 0.10%

Therefore, the monthly interest rate is 0.10%.

8 0
3 years ago
Who or what determines a country's GDP?
FromTheMoon [43]
Who i believ is the senator
8 0
3 years ago
Read 2 more answers
You have a $50,000 portfolio consisting of Intel, GE, and Con Edison. You put $20,000 in Intel, $12,000 in GE, and the rest in C
Marrrta [24]

Answer: 1.048

Explanation:

First let us calculate the amount in Con Edison

= 50,000 - 20,000 - 12,000

= $18,000

To calculate the Portfolio Beta, you take the sum of the respective betas of the various stocks in the portfolio multiplied by their proportion in the portfolio.

Intel = 20,000/50,000

= 2/5

GE = 12,000/50,000

= 6/25

Con Edison = 18,000/50,000

= 9/25

Adding them up we will have

= (1.3*2/5) + (1*6/25) + (0.8*9/25)

= 1.048

If you need any clarification do react or comment.

3 0
3 years ago
You recently purchased a stock that is expected to earn 22 percent in a booming economy, 11 percent in a normal economy, and los
UkoKoshka [18]

Answer:

Return on stock will be 12.65%

So option (c) will be the correct option

Explanation:

We have given expected return in booming economy = 22 %

Expected return in normal economy = 11 %

Expected return in recessionary economy = 4%

Probability of boom = 24% = 0.24

probability of normal economy = 67%=0.67

Probability of recession = 9 % =0.09

So  Expected return on stock = (Return in boom economy x Probability of boom economy) + (Return in normal economy x Probability of normal economy) +(Return in recessionary economy x Probability of recessionary economy)

Expected return on stock = (0.22 x 0.24) + (0.11 x 0.67) + (-0.04 x 0.09)

= 0.0528 + 0.0737 = 0.1265 = 12.6%

So option (c) will be the correct option

3 0
3 years ago
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