Answer: True
Explanation:
Marginal benefit is the maximum amount that a consumer will be willing to pay for an extra product. It should be known that as consumption rises, the marginal benefit starts reducing.
The marginal cost is the extra cost that a producer incurs when an extra unit of a product is made. Economic decisions made by economic agents are typically based on marginal as it'll be possible to know the impact of an extra decision made on a variable.
Therefore, it is better to evaluate economic decisions at the marginal, where the decision has to be made as long as its marginal benefit exceeds its marginal cost, if not equal to its marginal cost.
Answer:
The amount in September would Excom debit Product Warranty Expense is $805
Explanation:
According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:
Product warranty expense
= 700 radios * 5% * cost per radio $23
Product warranty expense
=35*$23
Product warranty expense
=$805
The amount in September would Excom debit Product Warranty Expense is $805
Answer:
Amount received = 217,043.56 (Approx)
Explanation:
Given:
Monthly deposit = $400
Interest rate = 3.2% / 12 = 0.002667 per month
Number of year = 63 year - 35 year = 28 year
Number of period = 28 × 12 month = 336 month
Computation:
![Amount \ received = PMT[\frac{(1+r)^n-1}{r} ]\\\\Amount \ received = 400[\frac{(1+0.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{(1.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{2.44713794-1}{0.002667} ]\\\\Amount \ received =400[\frac{1.44713794}{0.002667} ]\\\\Amount \ received =400[542.608901]\\\\Amount \ received =217,043.56\\\\](https://tex.z-dn.net/?f=Amount%20%5C%20received%20%3D%20PMT%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D%20400%5B%5Cfrac%7B%281%2B0.002667%29%5E%7B336%7D-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B%281.002667%29%5E%7B336%7D-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B2.44713794-1%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B%5Cfrac%7B1.44713794%7D%7B0.002667%7D%20%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D400%5B542.608901%5D%5C%5C%5C%5CAmount%20%5C%20received%20%3D217%2C043.56%5C%5C%5C%5C)
Amount received = 217,043.56 (Approx)
Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
