The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.
<h3>What are
systematic risk principles?</h3>
According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.
Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.
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Answer:
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be
Explanation:
In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem
from the FPC we have that
since all firms are homogeneous this means that
then
the industry output is then
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be
Answer:
Bounded rationality.
Explanation:
Bounded rationality is the possibility that in decision-making, rationality of people is restricted by the data they have, the subjective impediments of their psyches, and the limited measure of time they need to settle on a decision.
We can see here that if we assume that Starbucks increased its spending on advertising by 35 percent to increase sales in its current markets. The growth strategy this represents is: (d) Market penetration.
<h3>What is market penetration?</h3>
Market penetration actually refers to the success recorded by an organization or company in the selling of their goods and services to a specific market. Sales volume of the existing goods or services is actually used to measure market penetration.
The options that complete the question are:
(a) Market development
(b) Divesting
(c) Diversification
(d) Market penetration
(e) Product development
Thus, if Starbucks was able to increase its spending on advertising by 35 percent in order to increase sales in its current markets, then they had market penetration.
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Answer:
Explanation:
The article is "Copyright infringement and the Intellectual Property Complaints on Amazon. It was published on December, 12th 2018.
There has been an increase in the number of complaints about intellectual property violations and the copyright infringement at Amazon Inc. In order to counterfeit each other, sellers copy the features of each other’s products, thereby violating the intellectual property rights. Sellers have been filing complaints against one other at the company.
Amazon has also been trying hard to stop increasing cases of such liability litigations. Amazon has been removing any listing that has probability of copyright infringement. Sellers are also encouraged to take preventive actions when listing their products on the platform.
The adverse effects of copyright infringement on the overall society include:
• Copyright infringement can lower the quality of consumer goods. There will be lesser quality goods rather there'll be more of goods in terms of quantity.
• The overall economy will get impacted as there will be more legal cases. Legal penalties in society will also increase due to Sellers taking each others to court.