Answer:
a. $8,000.
Explanation:
The computation of the amount of overhead cost assigned to the product I is shown below:
= $40,000 ÷ 2,500 × $500
= $8,000
Hence, the amount of overhead cost assigned to the product I is $8,000
Therefore the correct option is a.
A downfall of the infant-industry argument is that o<span>nce established, a tariff is politically difficult to remove.
For new industries, it almost impossible for a new startup to compete against a well-established industry unless they have a unique differentiation in their product.</span>
Answer:
a common resource when it is congested, but it is a public good when it is not congested.
Explanation:
We live in different areas, across city streets, with roads and they can either be public goods or common resources. Now, when the streets are not congested, it simply means that an individual can freely access the areas without that affecting any other person. In this simple case, the use by one person is not in rival consumption and so the streets are said to be a public good. But when the area is fully congested, people might find it difficult to move around through the areas. The use of the areas could cause negative externalities. Because the place would be overcrowded, people can only move at a slow pace. In this case, the street are said to be a common resource.
<u>Answer:
</u>
The invention of the car is an early example of disruptive technologies.
<u>Explanation:
</u>
- The technologies that successfully break a certain long-running trend to start another successfully can be termed as disruptive technologies.
- The rate of acceptance of such technologies is initially the lowest but they thrive very soon to completely replace the existing methods in use.
- Disruptive technologies are often more efficient than their older alternatives and that is why they are deemed as profitable.
Answer:
The offer at $4.60 by the broker is higher than the calculated fair value of $4.545 hence i will not take up his offer
Explanation:
Given data:
stock A = $100 at t = 0
in two worlds : good scenario ; stock A = $120
bad scenario ; stock A = $70
probability = 0.5
annual risk less rate = 10% = 0.1
To determine if to take the offer or not we have to calculate the call option using the given parameters
Cu =
= $4.545
The offer at $4.60 by the broker is higher than the calculated fair value of $4.545 hence i will not take up his offer