Answer:
C. The portion of the investment opportunity set which includes the portfolios with the lowest standard deviation.
Explanation:
Standard deviation is the criterion used in measuring risky assets. Harry Markowitz proposed the Efficient Frontier in the year 1952. Through a graph, portfolios which have the highest potential for returns can be depicted.
For securities to be considered worthy, their standard deviation ought to be lower than the standard deviation of individual securities. When a portfolio measures up to this criterion, then it can be represented on the efficient frontier.
Answer:
C. Stay Open because Shutting Down would be More Expensive
Explanation:
Although it is quite obvious that in the short-run the business is not breaking even, based on the available options, staying open will be the best current course of action. Staying open and seeing if the trend of things change in coming fiscal years or financial periods will be better than shutting down.
Shutting down takes alot of processes that are quite expensive. Some of the processes include
- The Decision to Close
- File dissolution documents
- Cancel registrations, permits, licenses, and business names
- Comply with employment and labor laws
- Resolve financial obligations
- Maintain adequate records
These processes are expensive and since the business does not know what is causing the inability to cover its entire costs, it should investigate and find ways of increasing its total revenue to cover its entire costs before deciding to shut down completely.
a. Shut Down- Shutting Down is More Expensive
b. Exit the Industry- There isn't enough information to know exactly why the business is not making a profit
Answer:
A consumer is said to be indifferent between two consumption bundles when the two bundles provide the equal amount of utility
Explanation:
The two bundles are not different from each other in terms of utility which makes thw consumer to be indifferent with both
Answer:
The correct answer is c.
Explanation:
Since the point the text is mentioning is above the equilibrium point, we know that the Demand is lower than it should be, while supply is bigger.
In order to increase the demand and lower the supply, we need to decrease the price to the equilibrium price. This will increase the demand and lower the supply making them intersect and reach the equilibrium point, a point that the invisible hand is influencing.
I hope this helps!
Answer:
people can perform more efficiently if they master just one task rather than all tasks.
Explanation:
Specialisation is the process by which a person becomes proficient at one particular ntask and in so doing they increase efficiency of production process.
In this scenario a single person performing the task can do one to three auto repairs per day. But if one person removed the old part, another person prepared the new part, and a third person installed the new part, they were able to complete up to twenty repairs per day.
That is an average of 20 ÷ 3= 6.667 per person per day.
This shows that people can perform more efficiently if they master just one task rather than all tasks.