true or false: the following is idiosyncratic risk: the risk that the new product firm X's manager expects his R&D division to produce will not materialize.
true or false: the following is idiosyncratic risk: the risk that the new product firm X's manager expects his R&D division to produce will not materialize.
true or false: the following is idiosyncratic risk: the risk that your firm X's employees will be hired away by competitors.
true or false: the following is idiosyncratic risk: the risk that the Fed will increase interest rates, thus decreasing demand for real estate company X's products.
true or false: the following is idiosyncratic risk: the risk that the economy slows, decreasing demand for firm X;s products
18. Identify each of the following risks as either systematic risk or diversifiable risk: a. The risk that the CEO of your firm is killed in a plane accident b. The risk that the economy slows, decreasing demand for your firm's products c. The risk that your best employees will be hired away d. The risk that the new product you expect your R&D division to produce will not materialize
identify each of the following risks as most likely to be systematic risk or diversifiable risk:a. The risk that your main production plant is shut down due to a tornado. b. The risk that the economy slows, decreasing demand for your firm's products.c. The risk that your best employees will be hired away.d. The risk that the new product you expect your R&D division to produce will not materialize.
Answer the following true or false questions below: a) A firm will produce if P < AVC. (true or false) b) When P > AVC, the firm will produce in the short run at the quantity where P(=MR) is equal to its increasing MC. (true or false) c) The MC curve above the AVC curve is the firm's short-run supply curve. (true or false)
11. A division manager is considering investing in a new product. The division's income is currently $960,000 with operating assets of $16 million. The new product would increase income by $540,000 and would require an additional investment in equipment of $3 million. The ROI of the division before and after the investment is respectively: a. 6% and 18% c. 7.9% and 18% b. 6% and 7.9% d. 7.9% and 6%
Division 1 of Hindmarsh’s Engineering Co., expects the following results next year, all from sales to outsiders: Sales (10,000 units @$50) $500,000 Variable costs $200,000 Contribution margin $300,000 Fixed costs $100,000 Profit $200,000 Division 1 has a 12,000 unit capacity. Division 2 of the company is introducing a new product. The manager of Division 2 expects to sell 3,000 units of the new product at $75 per unit. The product requires a unit of Division 1’s product, which Division 2...
Please determine whether the following sentence is true or false. And explain your answer. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $4.75. The firm should continue to produce 100 units in order to maximize its profits.
Consider the following three statements. Are they true or false? (1) (True or False) In a price-taker market, all firms produce an identical product and each firm comprises only a very small portion of the total market. (2) (True or False) If a price-taker firm wants to sell its output, it must accept the market price, but it can sell as much output as it wishes at that market price. (3) (True or False) For a price-taker firm, its marginal...