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2 years ago

The production possibilities model illustrates an inverse relationship between two goods or services because

Business

1 answer:

nikklg [1K]2 years ago

6 0

Answer:

production of different types will compete for limited resources.

Explanation:

The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.

The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.

An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.

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Which of the following is representative of safeguarding assets?

iren2701 [21]

Yes it is correct the chart is increasing

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2 years ago

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Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 4 percent 2 years ago. The bond cu

slega [8]

Answer:

Explanation:

The pretax cost of debt is the YTM of the bond and the aftertax cost of debt is tax-adjusted. You can use a financial calculator and key in the following inputs.

note: adjust the recurring payment and time to semiannual basis.

Maturity of the bond as of today; N = 28*2 = 56

Price of the bond; PV = -( 1.07 * 1000) = -1,070

Face value of the bond ; FV = 1,000

Semi-annual payment; PMT = (4%/2)*1,000 = 20

Compute semiannual interest rate ; CPT I/Y = 1.801%

Next, convert the semiannual rate to annual rate(YTM) = 1.801% * 2 = 3.60%

Therefore, pretax cost of debt is 3.60%

Interest paid on borrowed money (debt) has tax benefits through interest tax shield. Based on this, the after tax cost of debt can be calculated. You can solve it by adjusting the pretax cost of debt to incorporate this tax benefit. The formula is as follows;

Aftertax cost of debt = Pretax cost of debt (1-tax)

Aftertax cost of debt = 0.0360(1-0.21) = 0.02844 or 2.84%

8 0

2 years ago

The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing secur

Slav-nsk [51]

Answer:

is limited by the returns on the individual securities within the portfolio

Explanation:

Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.

The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).

Expected Return is usually based on anticipated income and anticipated capital appreciation.

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2 years ago

Gasoline prices increase by 50 percent and other things remain the same. as a result, there is no change in the quantity of gaso

lianna [129]

As a result, there is a decrease in the quantity of gasoline demanded. Demand is the amount of a commodity or a service that consumers are willing and able to buy at a given market price while supply is the quantity of goods produced by the producers to the market. Increase in prices of a commodity leads to a decrease in the quantity demanded while a decrease in price while keeping other factors constant results to an increase in demand.

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2 years ago

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From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have

Vilka [71]

Answer:

a) Marginal cost of waiting is greater than the marginal benefit of being served

Explanation:

For an economic perspective, customer leave a fast food restaurant as they find the marginal cost of waiting is higher than the cost of marginal benefit of being served at restaurant.

Marginal cost: In economics, it is a cost that is incurred for an additional unit of benefit received out of certain action or activity.

Marginal benefit: It is a benefit received for an additional unit of cost incurred during the activity taken place.

Therefore, customer have done analysis on the benefit of waiting in a queue for getting served at restaurant, which he found that marginal cost is greater than the marginal benefit of being served.

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2 years ago