Answer:
Residual supply = Quantity supplied - Quantity demanded = (p - 20)/0.02 - (80 - p)/0.02
= (p - 20 - 80 + p)/0.02 = (2p - 100)/0.02 = 100p - 5000
So, Excess or residual supply function is: A) Sr(p) = - 5000 + 100p
At price of $ 60, Excess supply = - 5000 + 100(60) = - 5000 + 6000 = 1000
Explanation:
Answer:
Rate of return is 20%
Explanation:
Rate of return is the actual return received on a investment. In this question Blaser Corporation invested $1,075,000 in asset and earned a income of $216,000. So the rate of return is as follow
Rate of return = Income received / Investment in Assets = $216,000 / $1,075,000 = 0.200 = 20%
Answer:
The correct option is (A) more, greater
Explanation:
According to the risk return trade off, the risk is increased with the return that means if the returns are increased the risk is also increased and vice versa
So as per the given scenario, if there is more risk that investor wants to accept so the return should be more for the investment. This represents the direct relationship between the risk and return of the investment
hence, the correct option is (A) more, greater
Answer:
e. Sunk cost.
Explanation:
As per the given statement, the best appropriate option is sunk cost. As the sunk cost deals with the past cost which is already incurred in the past and it cannot be changed or avoided, neither it can be recovered. Example - Rent expense.
Plus it does not affect the future decisions that means it is irrelevant for decision-making aspects.
