A shop that sells one type of thing
Answer:
D) Marginal utility of the last unit of each product consumed is the same.
Explanation:
To maximize utility with a given income constraint, a consumer must chose products to maximize utility. This can be done so that each extra dollar, which is the marginal income, spent on each of these products yields the equal marginal utility. For example if one product yields more marginal utility per marginal dollar spent, the consumer should reallocate their income so they consume more of this product and less of others, so much so that the utility derived from this product equals utility derived from other products.
Utility is maximized when these marginal utilities per marginal dollar spent coincide.
Hope that helps.
Answer:
D)reducing its need to be self-sufficient,
Explanation:
Specialisation by a country's economy means that it produces only the specialised goods & even export it, import the other goods.
It decreases opportunity costs, decreases cost of voluntary exchanges. Higher level of specialisation implies there is increased labor force division.
However, it reduces need of country to be self sufficient. As, it can gainfully trade its specialised goods for other goods (in which other economy specialises).
Answer:
d. Transactions exposure.
Explanation:
Transactions exposure -
It is the level of uncertainty involved in a business in the international trade face .
It is the risk which currency exchange rates would fluctuate after the firm has taken a financial obligation .
The high level of vulnerability to shift the exchange rates can lead to the loss of the major capital for the international business .
Hence from the information of the question , the correct answer is d. Transactions exposure .
Answer:
11.7%
Explanation:
The common stock of a shaky building has a beta of 22%
The market risk premium is 9.56%
The US treasury bill is 3.3 %
Therefore the cost of equity can be calculated as follows
= 3.3/100 + (1+22/100)(9.56)
= 0.033 + (1+0.22)(9.56)
= 0.033 + 1.22×9.56
= 0.033 + 11.6632
= 11.7%
