Answer:allocative efficiency; marginal costs
Explanation:allocative efficiency is at an output level where the Price equals the Marginal Cost (MC) of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
The marginal cost is the cost of producing one additional item and is used to pinpoint the optimal economy of scale. The marginal benefit is the greater enjoyment created by producing one additional item.
Answer:
He was the smartest kid in the class because he knew how to solve the hardest math problem on the worksheet.
Explanation:
Answer:
b.The IRR is equal to 25.85%
Explanation:
Firstly we are given that i consider investing $100000 which will in this problem be our Cinitial which is the initial investment for the project.
Then now given the risk of this project, my cost of capital is 20% so then we will compare this to the IRR and see if i can accept the project or not if the cost of capital is greater than the IRR than its not good to invest on the project but if the cost of capital is less than the IRR then the this will be a good investment as the cost of capital also checks the opportunity cost.
The future payment cash flows which is $500000 so we will use the following formula:
NPV = (cash flow)/(1+IRR)^n - initial investment
so we find the present value of the cash flow of the investment and subract the initial investment which will give us a zero cause the present value of the cash flow is equal to the initial investment therefore( n is the period of cash flows):
0= $500000/(1+IRR)^7 - $100000 transpose the initial investment and solve for IRR.
$100000(1+IRR)^7= $500000 then divide both sides by $100000
(1+IRR)^7 = 5 then find the 7nth root of both sides to eliminate the exponent of 7
1+ IRR = ![\sqrt[7]{5}](https://tex.z-dn.net/?f=%5Csqrt%5B7%5D%7B5%7D)
1+IRR = 1.258498951 then subtract 1 both sides to solve for IRR
IRR = 0.258498... then multiply by 100 as IRR is a percentage
IRR= 25.85 % rounded off to two decimal places which is the answer b
Answer:
In the interest of clients
Explanation:
Remember an investment advisor provides guidance to clients in exchange for agreed fees. Because of this relationship the Investment advisor owe a fiduciary duty to clients; meaning they are madated to put the clients’ interests over their own.
In this scenario the investment advisor first buys 1000 shares of ABC common stock for his personal account.
Considering the clients interest first he buys shares of ABC stock that are greater than his worth 100,000 which he allocates to customer accounts.
Answer: interactional
Organizational justice refers to an employee ’s perceptions of fairness in the place of his work. There are four components of organizational justice: .distributive, informational interactional, and procedural. Of the four, Laura is feeling interactional injustice which based on interpersonal interactions and treatment of his boss towards her team members.