Marginal benefit <span>is the benefit received from consuming a good or service</span>. A persons maximum amount they are willing to pay for another unit of good or a service is set as the marginal benefit. The marginal benefit for each person varies because what each person is willing to pay for an additional unit is subject to their own.
Answer:
The answer is b. Up to $4 million.
Explanation:
It is critical to recognize that $3 million already spent on developing the product is the sunk cost, which is irrelevant cost that should not be included in the budget further spend for the new product.
As the new product is expected to generate a revenues of $4 million, the further cost should be spent on the new product development should not be exceeded the $4 million.
Thus, the answer is b. Up to $4 million is the correct choice.
Answer:
B
Explanation:
Beta of a portfolio is given by adding the some of the beta of each stock multiplied by the weights
Overall investment equals $50000+$50000=$100000
which gives Wx=50000/100000=0.5
Wy=50000/100000=0.5
Bp=Wx*Bx)+(Wy*By)
=(0.5*1.6)+(0.5*1.6)
=1.6
The expected return calculated by sum of weight multiplied by expected return
Er=(0.5*15%)+(0.5*15%)
=15%
The portfolio has a beta equal to 1.6 and expected return equal to 15%
Answer: 12.1%
Explanation:
Returns are generally quoted in Nominal terms because they include the inflation of the period. The 12.1% is therefore the nominal yield on the stock.
When adjusted for inflation however, the stock return will most likely reduce to reflect the real rate of return which shows the rate of return without the effects of inflation that 'exaggerates' return.
Answer: can lengthen response times by those closest to the market conditions because they must seek approval for their actions
Explanation:
Centralization simply refers to a form of organizational scenario where there is one person at the top that usually makes the major decisions for the company. The powers are usually held by those at the top and messages are passed to the lower level to be implemented.
One major drawback is that it can lengthen the response times by those closest to the market conditions because they must seek approval for their actions.