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alexdok [17]
2 years ago
5

A large, new diamond mine has just opened, and the price of diamonds has gone down. Since she has studied economics, Cecilia dec

ides to buy a diamond necklace since she knows that diamonds are in great demand. diamonds are a nonrenewable resource, making them scarce. the cost of diamonds depends only on the demand. the purchase of diamonds will satisfy wants and needs.
Business
2 answers:
lozanna [386]2 years ago
5 0

(B) diamonds are a nonrenewable resource, making them scarce.

Now from an Economist perspective, she bought a diamond necklace when the price was low, she knows that sooner or later the prices will go up. Cecilia knows that the only way to increase the value of diamonds is to make them scarce. How then do mining companies make diamonds scarce, they simply reduce production, and then the price will go up.

Ksenya-84 [330]2 years ago
5 0

The answer is B.diamonds are a nonrenewable resource, making them scarce.

i just took the test!!!

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A company purchased a computer system at a cost of $24,000. The estimated useful life is 6 years, and the estimated residual val
max2010maxim [7]

Answer:

Year 2= $3,333.33

Explanation:

Giving the following information:

A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.

To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= 2*[(24,000 - 9,000)/6]= 5,000

Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33

7 0
3 years ago
For questions 1-10, fill in the blank with the letter of the term that best matches the description.
LuckyWell [14K]

Following are the correct terms for the descriptions provided.

1. Coverage

2. Risk Management

3. Insurer

4. Premium

5. Liability

6. Policy

7. Actuary

8. Claim

9. Deductible

10. Insurance

<h3>Explanation</h3>

The correct answers for the explanation given in the question is described above.

An Insurance Company is called an Insurer, its products are called policy, they provide coverage for loss, this is a type of risk management, a person calculating all the figures is known as an Actuary, monthly or annually premiums are payable and claim can be made once the insured condition is met.

<h3 />

Therefore the answers are following

1. Coverage

2. Risk Management

3. Insurer

4. Premium

5. Liability

6. Policy

7. Actuary

8. Claim

9. Deductible

10. Insurance

Learn more about Business at brainly.com/question/26538066

3 0
2 years ago
You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c
ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

8 0
3 years ago
A sequence of organizations that directs a product from the producer to the ultimate user is called a(n) _____.
Norma-Jean [14]
The answer is that it is called as marketing channel or distribution channel.

A marketing channel refers to the people, organizations, and activities that are essential to switch the possession of products from the factor of production to the factor of intake and it is the way services and a product get to the end-user, the client and is also called as distribution channel.

4 0
2 years ago
You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1 next year, and your adviso
nikklg [1K]

Answer:

5%

Explanation:

stock's Alpha = R - Rf - beta (Rm - Rf)

  • R represents the stock's return = $6/$25 = 24%
  • Rf = 6%
  • Beta = 1.3
  • Rm = 16%

Alpha = 0.24 - 0.06 - 1.3 (0.1) = 0.24 - 0.06 - 0.13 = 0.24 - 0.19 = 0.05 = 5%

A stock's Alpha is basically the excess return that the stock yields compared to an specific benchmark, e.g. S&P 500, Dow Jones.

4 0
3 years ago
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