The best answer to the question above would be letter b. surplus. If a nation exports more than it imports, it has a trade surplus. A trade surplus is when the nation has too many goods and they have to export it. Importing would be a bad decision since more goods are added to the economy.
Answer:
15.26%
Explanation:
Given:
Expected return = 15.1% = 0.151
Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]
Expected earning in a boom = 18% = 0.18
Probabilities of a recession = 2% = 0.02
Probabilities of a normal economy = 87% = 0.87
Probabilities of a boom = 11% = 0.11
Now,
Expected return = ∑ (Probability × Return)
or
0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy
or
0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy
or
0.151 - 0.0182 = 0.87 × Return on normal economy
or
Return on normal economy = 0.1526
or
= 0.1526 × 100%
= 15.26%
It would be A, since they are practicing efficiency.
Answer:
No, There is not maximum profit
Explanation:
C(x) = cx
P(x) = 10x - C(x)
= 10x - cx
= x(10 - c)
if c<10 then:
10 - c >0
m>0 for m = 10 - c
P(x) = mx where .m>0
so this is a straight line with a positive slope, m.
therefore, theres is no maximum profit since as x -> infinity, P(x) = mx -> infinity as well.
