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3 years ago

Loss is the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium.

Business

1 answer:

avanturin [10]3 years ago

7 0

Answer:

True (Dead-weight loss )

Explanation:

When the market is not allowed to adjust towards the equilibrium the economics efficiency is lost. When the supply is excessive compared to demand some part of supply remains intact, which means that small of amount of supply does not contribute to economics and allocation efficiency and considered as a dead-weight loss. The supply is forgone because the market is not allowed to stabilise.

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3. You own a portfolio that has $4,740 invested in Stock A and $3,260 invested in Stock B. If the expected returns on these stoc

Alina [70]

Answer:

Portfolio expected return = 0.092225 or 9.2225%

Explanation:

The expected portfolio return is a function of the weighted average of the individual stocks' returns that form up the portfolio. The expected return on the portfolio containing two stocks can be calculated as follows,

Portfolio Expected Return = wA * rA + wB * rB

Where,

w represents the weight of stocks
r represents the return from each stock

To calculate the weight of each stock in the portfolio, we first need to calculate the total investment in the portfolio.

Total Investment = 4740 + 3260 = 8000

Portfolio expected return = 4740/8000 * 8% + 3260/8000 * 11%

Portfolio expected return = 0.092225 or 9.2225%

6 0

3 years ago

You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and

Rufina [12.5K]

Answer:

Hand saw is cheaper.

Explanation:

Given:

Material cost = $500

Electric saw cost rent per hour = $20

Building hour from electric saw = 6 hour

Building hour from hand saw = 15 hour

Time off pay from job = $8/hour

Computation of total cost from Electric saw :

Total cost from Electric saw = Material cost + Renting cost of electric saw + Time of from job

Total cost from Electric saw = $500 + (6 × $20) + (6 × $8)

Total cost from Electric saw = $500 + $120 + $48

Total cost from Electric saw = $668

Computation of total cost from hand saw :

Total cost from hand saw = Material cost + Time of from job

Total cost from hand saw = $500 + (15 × $8)

Total cost from hand saw = $500 + $120

Total cost from hand saw = $620

Hand saw is cheaper.

5 0

3 years ago

Dunlap contracted to work exclusively for Foster during June for $5,000. On May 31, Foster canceled the contract. Dunlap found a

Masja [62]

Answer:

$2,000

Explanation:

Compensatory damages can be claimed by a plaintiff in order to compensate for incurred losses or injuries. The plaintiff must prove that he/she suffered damages due to the defendant's negligence or unlawful conduct.

In this case, Dunlap lost $2,000 (= $5,000 - $3,000) because Foster didn't perform, so he can sue in a civil court to recover the $2,000.

4 0

3 years ago

Read 2 more answers

Your next-door neighbor, a kind, elderly lady, just discovered that her stock account had been excessively traded in an inapprop

SVETLANKA909090 [29]

This is an example of Churning.

<h3><u>What is Churning?</u></h3>

Churning, or excessive trading of assets in a client's account by a broker to generate commissions, is an unlawful and unethical practice.
Churning cannot be quantified, it may be demonstrated by the repeated purchasing and selling of stocks or other assets that fall short of the client's investing goals.
Churning is the practice of exchanging assets excessively in a client's brokerage account in an effort to earn commissions.

Learn more about churning with the help of the given link:

brainly.com/question/10845172?referrer=searchResults

#SPJ4

7 0

2 years ago

Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for th

Vlad1618 [11]

Answer:

1 VARIABLE COSTING ABSORPTTION THROUGHPUT

sales 4800000 4800000 4800000

opening stock 0 0 0

produced 2940000 3320000 1260000

closing 140000 158095.24 60000

cost of sales 2800000 3161904.762 1200000

contribution 2000000 1638095.238 3600000

direct labour 1680000

fixed cost

admin 660000 660000 660000

manufacturing 380000 380000

net income 960000 978095.2381 880000

2. variable absorption throughput

breakeven $218,487 $160,976 121353.5589

3. units to be sold 145000 87640.44944 332000

Explanation:

UNIT COST 7 7.90 3

material 3 3 3

labor 4 4

fixed cost 0.90

produced units

opening 0 0 0

produced 420000 420000 420000

closing 20000 20000 20000

sold 400000 400000 400000

breakeven = fixed cost / contribution per unit

3. change in unit cost

variable absorption throughput

material 4 4 4

labour 4 4

fixed cost 0.9

unit cost 8 8.9 4

sales

opening stock

produced

closing

cost of sales

contribution 1160000 780000 1328000

direct labour 168000

fixed cost

admin 660000 660000 660000

manufacturing 380000 380000

net income 120000 120000 120000

to get the amounts for the closing stock, opening stock, produced and sold we multiply by unit cost

to get produced units we take sold stock plus closing stock less openning stock

to get the units that must be sold to make net income of 120 000

we do bottom up approach and can stop at contribution then divide it by contribution per unit.

3 0

4 years ago