Answer:
Correct answer is False for economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input
Since, both input and output are fixed, the input can’t be decreased. Each of them has to be fixed in directive to vary the association among them. (It can be fixed contribution, or fixed production or neither one of them is fixed)
Answer:
Benefits from related & unrelated diversification.
Explanation:
Firms' benefit(s) from related diversification :
- Building & developing market power - By sharing the related diversification going on in entire industry.
- Sharing activities & market linkages with other businesses - Associated diversification implies forward & backward linkages.
Firms' benefit(s) from unrelated diversification :
- Leveraging & enhancing different core competencies, USP - By Focusing on self paced unique diversification
- Creating a different ostentation brand - Creating a strong brand, capable of becoming a market leader, rather than market follower
Key concepts explaining firm success or failure from either diversification are implicit within above explanation.
Answer:
11.15%
Explanation:
Given that
Risk free rate of return= 5%
Beta = 1.69
Expected rate of return = 15.4%
As per capital asset pricing model
Expected rate of return = Risk free rate of return + Beta × (Market rate of return - risk free rate of return)
15.4% = 5% + 1.69 × (Market rate of return - 5%)
After solving this
Market rate of return = 11.15%
Answer:
Pine Street should sell finished bookcases.
Explanation:
Differential analysis
Sell unfinished Process further Net income
Increase (decrease)
Sale price per unit 58.09 73.08 14.99
<u>Cost per unit</u>
Variable 37.97 44.61 -6.64
Fixed 10.12 10.12 0
Total 48.09 54.73 8.35
Net income per unit 10 18.35 8.35
So, the book cases should be sold after processed further.
