Answer:
small; wage rate
Explanation:
The purely competitive market is a wage taker as there are many number of firms who wants to purchase the labor services in that market also there are many number of workers who have similar skills and wants to sell their labor services
So as per the given situation, the each and every kind of firm wants to employs a small fractions of total supply available so that no firm could influence the wage rtae
Therefore the last option is correct
Answer:
A) have zero alphas
Explanation:
Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.
This is why the CAPM model only considers beta in its calculation.
Answer: B) cars and petrol
Answer:
Results are below.
Explanation:
Giving the following information:
The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make.
<u>The contribution margin per unit is calculated using the selling price per unit and the unitary variable cost:</u>
<u></u>
Unitary contribution margin= 205 - 164= $41
<u>Now, to calculate the contribution margin ratio, we need to use the following formula:</u>
contribution margin ratio= contribution margin/selling price
contribution margin ratio= 41/205
contribution margin ratio= 0.2
Answer:
The correct answer is c) rises.
Explanation:
Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally participate in the international market. In this sense, it can boost its foreign trade.
It is then the basic idea that countries choose to specialize in order to trade in activities where they have a certain advantage. That is, instead of producing what they do best in an absolute way, they produce what they do best in a relative way. Therefore, the difference with the theory of absolute advantage is that it does not produce what the country costs less, but the one with lower comparative costs.
