Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:

If we calculate the value of the stock for the year after that:

to calculate the value of the increase we divide next year over current year.

We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
When resources are low, businesses know that they can increase their prices because people need them desperately.
Answer:
c. 30 percent lower.
Explanation:
Since the manufacturer is contemplating a switch from buying to producing a certain item while setup cost would be the same as ordering cost, the production rate would be about double the usage rate.
Compared to the Economic Order Quantity (EOQ), the maximum inventory would be approximately 30 percent lower under Economic Production Quantity (EPQ), and higher under EOQ.
The answer to this question is Variable cost.
As the level of production increase , the total variable cost is increased and vice versa.
Examples of variable cost are the cost of sugar in condensed milk factory, the cost of leather in bag manufacturing, the cost of coffee beans in starbucks, etc.
Answer:
Positive Statements: 1st & 2nd ; Normative Statements: 3rd & 4th
Explanation:
Positive Economics is <u>objective</u> & <u>facts</u> based <u>actual</u> economic issue description , explaining verifiable phenomenas (causal relationships).
Normative Economics is <u>subjective</u> & opinion based conclusive <u>solutions</u> to economic issues, including '<u>ought to be</u>' unverifiable suggestions.
1. Lung cancer kills millions of people each year: reflects actual objective verifiable fact about an economic (health) issue.
2. Too many people smoke: denotes another actual objective variable fact connected to (potential cause of) the above economic (health) issue.
So , these two are Positive Statements.
3. If the government were to increase taxes on cigarettes, fewer people would smoke : Is subjective opinion based probable solution to the above economic (health) issue.
4. The government should increase taxes on cigarettes : Is an 'ought to' suggestion for an economic participant (govt) to solve the above economic (health) issue.
So , these two are Normative Statements