Closely associated with short-run ups and downs of economic
Answer:
The discount rate is 12.46%
Explanation:
In this question, we use the Capital asset pricing model (CAPM).
The formula and computation of the discount rate is shown below:
= Risk-free rate of return + (Beta × Market risk premium)
= 3.5% + (1.12 × 8%)
= 3.5% + 8.96%
= 12.46%
Since we have to compute the discount rate for the project that involves the manufacturing of furniture, so we have to use the Integral designs beta instead of the Honest Abe because Integral design is a furniture maker
Answer:
500 + 0.40q
Explanation:
A publisher prints copies of a popular weekly tabloid for distribution and sale.
Given that,
Fixed costs = $500 per print run
Variable cost = $0.40
Therefore, the cost function is as follows:
Let the number of copies printed be q,
Cost function: C(q) = Fixed cost + Variable cost
= 500 + (0.40 × q)
= 500 + 0.40q
Answer:
c. scarce for households and scarce for economies.
Explanation:
One of the most popular definitions of economic sciences is that this field studies the allocation of scarce resources. This reference to scarcity is a general consensus that exists within economic scientifics and makes no exceptions: the economy is a virtual entity consititued by households, individuals, firms, government and environment. Is not logical to assume scarcity in the economy and plentiful in the households and viceversa.
