Answer:
selling the defective gloves as they are results in a $3,000 higher gain
Explanation:
the manufacturing costs of the defective gloves should be considered a sunk cost since they cannot be recovered:
alternative 1, sell defective gloves = $18 x 1,000 = $18,000 gain
alternative 2, repair the gloves and sell them at normal price = ($40 - $25) x 1,000 = $15,000 gain
alternative 1 (selling the defective gloves as they are) results in a $3,000 higher gain
Georgia has an investment portfolio of five stocks. Types of risk is georgia's portfolio subject is <u>unsystematic risk</u><u>, because there are only five stocks </u><u>across two sectors</u><u>.</u>
Option D is correct.
<h3>What's an effective portfolio?</h3>
An effective portfolio is either a portfolio that offers the loftiest anticipated return for a given position of threat, or one with the smallest position of threat for a given anticipated return. The line that connects all these effective portfolios is the effective frontier.
<h3>What's unsystematic threat?</h3>
Unsystematic threat is also known as specific threat, meaning the troubles that are unique to a single company or assiduity. still, these pitfalls don't only do one establishment at a time. For illustration, a poor director might pose a specific threat to a single company's stock price.
Learn more about unsystematic risk:
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Answer:
$1,500
Explanation:
Domestic investment = $1500 billion
Private domestic savings = $3000 billion
Government deficit = $2000 billion
Rise in government spending = $1000 billion
Now,
Trade deficit =
Domestic investment - Private domestic saving - Government savings
also,
Total Government deficits = $2,000 + $1000
= $3,000
and,
Government savings = - Government deficits
= - $3,000
Now we know government deficit is 3000 billion and if spending increases further 1000 billion, the government deficit will be 4000 billion
thus,
Trade deficit = $1,500 - $3,000 - (- $3,000)
or
= $1,500