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3 years ago

Economists measure the personal satisfaction someone gets from consuming goods and services with the concept of

1 answer:

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Economists measure the personal satisfaction derived from consuming goods and services with the concept of UTILITY. Utility refers to the total satisfaction derived from consuming a good or service. The utility of a good or service has direct influence on demand and therefore price of that product.

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This is an organization of workers that negotiates with employers for better pay

a_sh-v [17]

Answer: The correct answer is a labor union.

Explanation: A labor union is an organized group of workers who are often in a common trade or profession. The union is formed to protect and further the rights and interests of the members. This normally includes collectively bargaining, where the labor union negotiates the salaries and benefits that will be paid to all of its members.

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3 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal

lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

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2 years ago

Suppose Keyboard estimates it will use 125 comma 000 comma 000 parts per month and ship products with a total volume of 27 comma

djverab [1.8K]

Answer:

Kitting: $0.072 per part and Boxing: $0.764 per cubic feet

Kitting: $12.6 and Boxing: $6.9

Explanation:

Given that Keyboard spends $9,000,000 per month on kitting and $21,000,000 per month on boxing.

Keyboard estimates it will use 125,000,000 parts per month and ship products with a total volume of 27,500,000 cubic feet per month.

a) Since Kitting costs based on the number of parts used in the computer:

The predetermined overhead allocation rate for kitting = Money spent on kitting / number of parts used per month = $9000000 / 125000000 = $0.072 per part

Since Boxing costs based on the cubic feet of space the computer required:

The predetermined overhead allocation rate for Boxing = Money spent on Boxing / total = $21000000 / 27500000 = $0.764 per cubic feet.

a) each desktop computer requires 175 parts and has a volume of 9 cubic feet

For kitting, Activity cost per desktop = Predetermined overhead allocation rate x quantity per desktop = $0.072 × 175 = $12.6

For Boxing, Activity cost per desktop = Predetermined overhead allocation rate x quantity per desktop = $0.764 × 9 = $6.9

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3 years ago

A player in a game theoretic model is: a. anyone working for a firm that is operating strategically b. a firm that is operating

nadezda [96]

Answer: c. a decision-making entity at a firm involved in a strategic game

Explanation:

In a theoretical game, there are two players that have to embark on different strategies such that they make the maximum payoff. This maximum payoff strategy is known as the dominant strategy.

These two players are the decision making entities in the firms that are competing in the game because they are the ones that decide how the firm should react and what strategy to use. For instance, the owners of the two bakeries down the street are the players because they control what either bakery will do.

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3 years ago

A building acquired at the beginning of the year at a cost of $123,800 has an estimated residual value of $4,800 and an estimate

grigory [225]

Answer:

A. $119,000

B. 10%

C.$11,900

Explanation:

Deprecation is a method used in expensing the cost of an asset.

The depreciable cost = Cost of asset - Salvage value = $123,800 - $4,800 = $119,000

The straight line rate = 1/10= 0.1 = 10%

annual straight-line depreciation = depreciable cost × straight line rate = $119,000 × 0.1 = $11,900

I hope my answer helps you

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3 years ago