what are the pros and cons of using creative interview questions and techniques? be sure to consider legal issues.
Answers
Creative interview questions and techniques can offer several advantages and disadvantages for both the interviewer and the interviewee. Here's an analysis that includes legal issues as well:
Pros:
1. Improved candidate assessment: Creative questions help assess a candidate's problem-solving, critical thinking, and adaptability skills, leading to a more accurate evaluation of their potential performance in the role.
2. Increased engagement: Unique and unconventional questions can make the interview process more enjoyable, encouraging candidates to open up and showcase their personalities.
3. Enhanced employer branding: Innovative interview techniques can make a company stand out and improve its reputation, potentially attracting top talent.
Cons:
1. Inconsistent results: Some candidates may respond well to creative questions, while others may struggle, leading to an inconsistent evaluation of their abilities.
2. Potential biases: Creative techniques might inadvertently favor certain personalities or cultural backgrounds, potentially excluding qualified candidates and leading to discriminatory hiring practices.
3. Legal risks: Asking unconventional questions may pose legal risks if they violate anti-discrimination laws, potentially resulting in lawsuits or penalties.
In conclusion, while creative interview questions and techniques can provide valuable insights and make the process more engaging, it's important to balance them with traditional methods to ensure fairness and compliance with legal requirements. The key is to select creative questions that remain job-related, relevant, and respectful of candidates' backgrounds and experiences.
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Related Questions
an investor buys a corporate bond at 90 with 10 years to maturity. of the investor sells the bond at 97 in 6 years, what is the gain or loss? $10 loss $40 gain $40 loss $10 gain
Answers
Here's a step-by-step explanation to calculate the gain or loss on the corporate bond investment:
1. The investor buys the bond at 90% of its face value. Assuming the bond has a face value of $100, the purchase price is 90% x $100 = $90.
2. The bond has a 10-year maturity, but the investor sells it after 6 years at 97% of its face value. The selling price is 97% x $100 = $97.
3. To determine the gain or loss, subtract the purchase price from the selling price: $97 (selling price) - $90 (purchase price) = $7.
4. Since the result is positive, the investor has a gain on the investment. The gain is $7, which is not one of the options provided. However, it is closest to the "$10 gain" option. So, the answer is approximately a $10 gain.
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During civil lawsuit proceedings regarding alcohol service, courts will try to determine if the
designated driver was present and remained sober. guest's BAC was checked throughout the evening. server recently attended proper alcohol training, server contributed to the injury.
Answers
Courts will attempt to ascertain if the designated driver was there and stayed sober throughout civil lawsuit proceedings over alcohol service.
A lawsuit is a legal action brought by one or more plaintiffs or claimants against one or more defendants. Only a limited number of laws from long ago that are still in force include the phrase "suit in law." The term "lawsuit" refers to a civil action that is launched by a plaintiff—a party who alleges that they have suffered loss as a result of the defendant's actions—and in which the plaintiff asks the court for either a legal remedy or an equitable remedy.
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Investment Decisions and Payoffs
Large Gain Small Gain No Change Small Fall Large Fall
Gold -$1,000 $1,000 $2,000 $3,000 $0
Bond $2,500 $2,000 $1,500 -$1,000 -$1,500
Stock $5,000 $2,500 $1,000 -$2,000 -$6,000
Given the payoff table shown below calculate the
following:
a) Maximin
b) Maximax
Answers
The Maximin strategy is to choose Gold, while the Maximax strategy is to choose Stock.
What are the Maximin and Maximax strategies based on the given payoff table?
The given payoff table represents the potential outcomes and associated payoffs for three investment options: Gold, Bond, and Stock. To calculate the Maximin and Maximax strategies, we need to determine the minimum and maximum payoffs for each investment option.
a) Maximin strategy: We calculate the minimum payoff for each option and select the option with the maximum minimum payoff.
Gold: Minimum payoff is -$1,000.Bond: Minimum payoff is -$1,500. Stock: Minimum payoff is -$6,000.Therefore, the Maximin strategy is to choose Gold, as it has the highest minimum payoff of -$1,000.
b) Maximax strategy: We calculate the maximum payoff for each option and select the option with the maximum maximum payoff.
Gold: Maximum payoff is $3,000.Bond: Maximum payoff is $2,500. Stock: Maximum payoff is $5,000.Therefore, the Maximax strategy is to choose Stock, as it has the highest maximum payoff of $5,000.
In summary:
a) Maximin strategy: Choose Gold.
b) Maximax strategy: Choose Stock.
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Unpredictable policies can result in conflict because employees may ______.
a.
Believe that there is a double standard
b.
Have to guess at what the policies actually are
c.
Give out information that is incorrect
d.
All of the above
Answers
Answer:
All of the above
Explanation:
D.
Answer:
D
Explanation:
Above
why might an effective rent control actually increase homelessness in a city? multiple choice landlords will make less of an effort to maintain rent-controlled apartments because they receive less rent from these apartments. landlords will build more apartments due to the shortage of affordable housing. fewer people will look for apartments in the area due to the shortage of affordable housing. more people may move to the area hoping to find a lower-priced apartment.
Answers
An effective rent control can increase homelessness because more people may move to the area hoping to find a lower-priced apartment.
What is rent control?Rent control is when the government or an agency of the government sets the maximum price that landlords can charge as rents. When rent control is effective, it is set below the equilibrium price.
When rent is set below the equilibrium price for rents, the quantity demanded would exceed the quantity supplied. The quantity demanded of rented house would increase because people would move to the area where it is cheaper to rent. This would result in a shortage. As a result, there would be an increase in homelessness.
Rent control is an example of a price ceiling. Price ceiling is when the maximum price of a good is set by the government. Price ceilings are enacted to control the increase in price of a good or service and protect the consumers of the product.
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July 1 $17,900 in cash was raised from selling capital stock in the new company. Bought supplies for cash, $960. 2 3 Purchased equipment for the office for a total price of $3,600. A $600 down payment was made, and the remainder was put on account. Paid the first month's rent (July) of $2,100. 6 7 9 Received $3,310 for July services provided to cash customers. Billed (by mail) customers for July services provided, $4,620. Paid $1,000 on account. 13 17 Received $2,620 from customers on account. 26 Paid staff salaries of $3,140. 31 31 A $1,220 bill from the local electric company, covering the month of July arrived today. An inventory of the supply room shows $540 worth was used up. $230 in dividends was paid to stockholders. 31
Answers
There are several transactions that were made by the new company in the month of July, and they are as follows: July 1: The new company raised $17,900 in cash by selling capital stock. July 2-3: The new company purchased equipment for the office for a total price of $3,600.
A $600 down payment was made, and the remainder was put on account. July 6: The new company paid the first month's rent (July) of $2,100. July 9: The new company received $3,310 for July services provided to cash customers. July 13: The new company paid $1,000 on account. July 17: The new company received $2,620 from customers on account. July 26: The new company paid staff salaries of $3,140. July 31: The new company was billed (by mail) customers for July services provided, $4,620.
The new company paid a $1,220 bill from the local electric company, covering the month of July. An inventory of the supply room shows $540 worth was used up. $230 in dividends was paid to stockholders.The new company bought supplies for cash, $960. The new company had a total cash inflow of $20,210 ($17,900 from selling capital stock, $3,310 from cash customers, and $2,620 from customers on account) and a total cash outflow of $14,140 ($3,600 for equipment, $600 for the down payment on equipment, $2,100 for rent, $1,000 on account, $3,140 for staff salaries, $1,220 for the electric bill, $960 for supplies, and $540 for supplies used).
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Which sentence in the passage is an example of a real-world situation that could restrict Martha’s decisions?
Martha is in her late teens. She lost her father in the war several years ago. Just like her father, Martha wants to join the military and serve her country. However, Martha has several obstacles in her path. Martha’s mother is overly protective of her daughter and has always tried to keep her safe. Also, Martha is still tormented by the memories of the war and her father’s absence. To make matters worse, Martha might not qualify for the military because of her petite and fragile frame.
Answers
"Martha is in her late teens. She lost her father in the war several years ago. Just like her father...." the sentence in the passage is an example of a real-world situation that could restrict Martha’s decisions "To make matters worse, Martha might not qualify for the military because of her petite and fragile frame.". This is further explained below.
What is a passage?Generally, a passage is simply defined as a part or chunk of a piece of writing.
In conclusion, Martha in the passage Martha saw a real-world situation and this was "To make matters worse, Martha might not qualify for the military because of her petite and fragile frame." was on that could that restrict Martha’s decisions
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Answer:
Martha might not qualify for the military because of her petite and fragile frame.
Explanation:
I took the test! Correct in Edmentum!
as the demographics of this media continue to move upscale, the products offered continue to move upscale as well. for example, one major provider started carrying the more expensive sally hershberger line of hair care products. group of answer choices infomercials broadcast media home shopping direct mail
Answers
The products available match the upward movement in this media's demography in terms of class. For instance, a significant supplier began carrying the pricier Sally Hershberger line of hair care goods. infomercials, broadcast media, home shopping, and direct mail are a group of answer options. is accurate.
All parts of hygiene and cosmetology that deal with body hair, facial hair, pubic hair, and other hair that grows from the human scalp are referred to as "hair care." Several hair care regimes are utilised, depending on a person's culture and the physical characteristics of their hair. Waxing, sugaring, and threading are a few of the procedures that can be used to colour, trim, remove, shave, pluck, or alter the hair in other ways. Hair care services are offered in salons, barbershops, and day spas, and there are also products you may buy to use at home. There are alternative choices for electrolysis and laser hair removal, but only trained professionals in clinics or speciality spas provide these services.
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Please help will mark brainliest
Macroeconomics deals with *
1. bits and pieces of the economy
2. the question of how a business unit should operate profitably
3. the working of the entire economy
4. how individuals make decisions
Answers
Answer:
how individuals make decisions
Explanation:
The ________ helps define the overall structure of the Internet.
A) IAB
B) IESG
C) W3C
D) ITU
Answers
(Option A) IAB. The Internet Architecture Board (IAB) helps define the overall structure of the Internet.
It is a committee of the Internet Engineering Task Force (IETF) and provides guidance and advice on technical and policy issues related to the development and evolution of the Internet. The IAB plays a key role in ensuring the stability and interoperability of the Internet by defining and promoting standards for Internet protocols and architectures. It works closely with other organizations such as the Internet Assigned Numbers Authority (IANA) and the Internet Corporation for Assigned Names and Numbers (ICANN) to ensure that the Internet operates smoothly and efficiently.
The IAB is responsible for developing and maintaining the Internet protocol suite, which includes protocols such as TCP/IP, DNS, and HTTP. It also provides guidance on security and privacy issues related to the Internet, as well as on emerging technologies such as the Internet of Things (IoT) and 5G networks. Overall, the IAB plays a critical role in ensuring that the Internet remains an open, accessible, and reliable platform for communication and innovation.
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The Dodd-Frank Wall Street Reform and Consumer Protection Act stipulated that if more than $1 million is collected, the whistle-blower is entitled to ________ of the monies collected.
Answers
Answer:between 10 and 30 percent
Explanation:
What is the most utilized part of the corn kernel?
Answers
Answer:
endosperm is the correct answer
which of these is a criterion used to select a target market segment?
Answers
Answer:
the first one by the website
Explanation:
the websites name is the eustions name
Expected growth of a segment of these is a criterion used to select a target market segment. Thus, option (e) is correct.
What is segmentation?
Segmentation is the process of target market into groupings of potentiality customers choices and the needs. There are the different parts such as psychographic, geographic segmentation, demographic, and behavior.
The segmentation of the target market are the target this consumer was the related to the particular product and the services. The target market segment size of the population, expected growth of a segment, competitive position in the market, cost to reach, and characteristic.
As a result, the significance of the segmentation are the aforementioned. Therefore, option (e) is correct.
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Your question is incomplete, but most probably the full question was.
similarity of needs of potential buyers within a segmentmeasurements of customer perceptionsdifference of needs of buyers among segmentspotential of a marketing action to reach a segmentexpected growth of a segmentThe principle of decreasing marginal benefit is that as_______.
Answers
The principle of decreasing marginal benefit is that as the quantity of a good consumed,increases, its marginal benefit decreases. Pizza slices.
The marginal utility principle is what, exactly?The marginal utility rule states that by selecting the amount at which marginal utility equals marginal cost, we can maximize economic net economic benefit of any action.The activity's net benefit is maximum at this amount.
What is the foundation of total marginal cost?The marginal cost is the cost to produce a subsequent unit of output.Marginal cost is a key topic in costing system since it helps in identifying the quantity of production that is most effective for just a manufacturing process.
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Regulatory policy requires a balance between protecting safety and.
Answers
protecting constitutional rights.
Answer: protecting constitutional rights.
What is a disadvantage of solar thermal systems?Question 10 options: There are some direct emissions of CO2 and other air pollutants. There are high costs associated with the necessary natural gas turbine backups. There is low potential for growth. The systems have low net energy yield and high costs. The high technology requirements could displace jobs for local workers.
Answers
Answer:
The systems have low net energy yield and high costs.
Explanation:
In the case of the solar thermal power/electric generation systems it collects and concentrate the sunlight in order to generate the heat of high temperature so that the electricity could be generated. It mainly have two components i.e. reflectors and the focus sunlight
So the disadvantage of this is that it develops the less net energy yield also it cost is high so not everyone could afford it
I am really confused and need the answer soon thx for helping
Answers
B. Previous balance+ new charges- principal paid- is the formula for calculating the new balance on the credit card.
Hence, option b. is the right choice.
Function of a credit card.A credit card is a payment card given to users (cardholders) to allow them to pay a merchant for products and services based on their accumulated debt.
What is a credit card limit?The Credit Limit, also known as the Credit Card Limit, is the maximum sum that a person may charge on their Credit Card. The issuing firm sets this restriction.
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Thornton Training Services (TST) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients’ offices on the clients’ equipment. The only major expense TST incurs is instructor salaries; it pays instructors $5,600 per course taught. TST recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $470 per student. Novak estimated that 20 students would attend the course.
Base your answers on the preceding information.
Problem 2-21A (Algo) Part 2
The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $280 per person attending the class. Assume that the tuition fee remains at $470 per student.
F. Is the cost of instruction a fixed or a variable cost?
G. Determine the profit, assuming that 20 students take the course.
H. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability?
I. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?
Answers
F. The cost of instruction in this scenario is a fixed cost. This is because the instructor salary of $5,600 per course taught remains the same regardless of the number of students attending the course. It does not vary with the level of activity or number of students.
G. To determine the profit when 20 students take the course, we need to calculate the total revenue and subtract the total cost. The total revenue is obtained by multiplying the price per student ($470) by the number of students (20). Therefore, the total revenue is $470 * 20 = $9,400.
The total cost is the fixed cost of instructor salary, which is $5,600 per course taught. Therefore, the total cost is $5,600.
To calculate the profit, we subtract the total cost from the total revenue: $9,400 - $5,600 = $3,800.
Therefore, the profit when 20 students take the course is $3,800.
H. Assuming a 10 percent increase in enrollment to 22 students, the total revenue can be calculated by multiplying the price per student ($470) by the number of students (22). Therefore, the total revenue is $470 * 22 = $10,340.
The total cost remains the same at $5,600.
To calculate the profit, we subtract the total cost from the total revenue: $10,340 - $5,600 = $4,740.
The percentage change in profitability can be calculated using the following formula:
Percentage change in profitability = (New profit - Old profit) / Old profit * 100%
In this case, the old profit was $3,800 and the new profit is $4,740.
Percentage change in profitability = ($4,740 - $3,800) / $3,800 * 100% = 24.74%
Therefore, the percentage change in profitability when enrollment increases to 22 students is 24.74%.
I. Assuming a 10 percent decrease in enrollment to 18 students, the total revenue can be calculated by multiplying the price per student ($470) by the number of students (18). Therefore, the total revenue is $470 * 18 = $8,460.
The total cost remains the same at $5,600.
To calculate the profit, we subtract the total cost from the total revenue: $8,460 - $5,600 = $2,860.
The percentage change in profitability can be calculated using the formula mentioned earlier:
Percentage change in profitability = (New profit - Old profit) / Old profit * 100%
In this case, the old profit was $3,800 and the new profit is $2,860.
Percentage change in profitability = ($2,860 - $3,800) / $3,800 * 100% = -24.74%
Therefore, the percentage change in profitability when enrollment decreases to 18 students is -24.74%.
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Type the correct answer in the box. Spell all words correctly.
Which two types of project activities does the CPM tool consider?
According to CPM, ________ activities can be carried out simultaneously, whereas sequential activities depend on each other.
Answers
According to CPM, Parallel activities can be carried out simultaneously, whereas sequential activities depend on each other.
What is CPM?Cost Per Mille (CPM) is a form of advertising pricing model that refers to the cost of one thousand impressions. It is commonly used by online advertisers and media buyers to measure the cost efficiency of their ad campaigns. CPM is calculated by dividing the total cost of the ad campaign by the total number of impressions. This pricing model allows advertisers to pay only for the number of impressions their advertisement will receive, rather than paying for each click or action from a user. CPM is often used to compare the cost effectiveness of different ad campaigns, allowing advertisers to evaluate which campaigns are providing them with the most value for their money.
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in the excel, or spreadsheet, approach to recording financial transactions, factory utility costs paid in cash are recorded as a decrease in the cash column and as an increase in the manufacturing overhead column.
Answers
When using the Excel or spreadsheet approach to recording financial transactions, factory utility costs paid in cash are typically recorded as a decrease in the cash column and an increase in the manufacturing overhead column. This ensures accurate tracking of cash outflows and proper allocation of expenses related to manufacturing operations.
In the Excel or spreadsheet format, the cash column represents the company's cash or cash equivalents. When cash is paid for factory utility costs, it is recorded as a decrease in the cash column. This reflects the outflow of cash from the company's resources and helps maintain an accurate record of available funds.
Simultaneously, the manufacturing overhead column is used to capture expenses associated with running the manufacturing operations. Factory utility costs are categorized as manufacturing overhead because they are indirect expenses incurred in the production process. By recording an increase in the manufacturing overhead column, the company acknowledges and allocates the cost incurred for factory utilities to the production activities. This allows for a more comprehensive analysis of the manufacturing overhead expenses and their impact on the overall cost structure of the company.
By following this approach, the Excel or spreadsheet format ensures the accuracy and completeness of financial records, facilitates the monitoring of cash flows, and provides valuable insights into the manufacturing overhead costs associated with the production process.
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A direct or positive relationship exists between a country's productivity and its standard of living Productivity is defined as the a. actual amount of effort workers put into an hour of working time. b. amount of goods and services produced from each unit of labor input. c. amount of labor that can be saved by replacing workers with machines. d. number of workers required to produce a given amount of goods and services
Answers
Productivity is the amount of goods and services produced from each unit of labor input. Thus option B is correct. There is a direct or positive relationship between a country's productivity and its standard of living.
When productivity increases, it means that more goods and services are produced with the same amount of effort and labor. This increase in productivity leads to an increase in the country's standard of living because more goods and services can be produced and consumed, leading to an increase in the nation's wealth. In addition, increased productivity can lead to lower production costs, which in turn can lead to lower prices for consumers and further improvements in living standards.
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Resolve (7x+19)/(x+1)(x+5) into partial fraction
Answers
Answer:
\(\dfrac{7x+19}{(x+1)(x+5)}=\dfrac{3}{x+1}+\dfrac{4}{x+5}\)
Explanation:
The given expression is
\(\dfrac{7x+19}{(x+1)(x+5)}\)
We need to resolve this into partial fraction.
The form of the partial fraction decomposition is
\(\dfrac{7x+19}{(x+1)(x+5)}=\dfrac{A}{x+1}+\dfrac{B}{x+5}\) ...(1)
\(\dfrac{7x+19}{(x+1)(x+5)}=\dfrac{A(x+5)+B(x+1)}{(x+1)(x+5)}\)
\(7x+19=Ax+5A+Bx+B\)
\(7x+19=(A+B)x+(5A+B)\)
On comparing both sides, we get
\(A+B=7\) ...(2)
\(5A+B=19\) ...(3)
Subtract (2) from (3), we get
\(4A=12\)
\(A=3\)
Put A=3 in (1).
\(3+B=7\)
\(B=4\)
Put A=3 and B=4 in (1).
\(\dfrac{7x+19}{(x+1)(x+5)}=\dfrac{3}{x+1}+\dfrac{4}{x+5}\)
Therefore, \(\dfrac{7x+19}{(x+1)(x+5)}=\dfrac{3}{x+1}+\dfrac{4}{x+5}\) .
your 75-year-old grandmother expects to live for another 15 years. she currently has $1,000,000 of savings, which is invested to earn a guaranteed 5% rate of return. how much can she withdraw (to the nearest dollar) at the beginning of each year and keep the withdrawals constant in all the years?
Answers
Based on my grandmother's savings, rate of return, and rate of inflation, the amount she can withdraw at the beginning of each year is $81,027.
What is an annuity?
Annuities are financial instruments that pay individuals a fixed stream of payments, primarily used as a source of income for retirees.
grandmother can resign at the beginning of each year
First, she asks for the inflation-adjusted rate of return.
1 + Adjusted Yield = (1 + Nominal Yield) / (1 + Inflation Rate)
1 + adjusted return = 1.05 / 1.023
Adjusted rate of return = 2.94D
The amount to be withdrawn can be determined using her PMT function in the table.
Rate = 2.9D
Nper = 15 years
PV = - 1,000,000
Type = 1 (withdrawal at the beginning of the year)
The amount turned out to be her $81,027.
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what are the sources of income of the government? where do these taxes go?
Answers
Answer:
The taxes go in the national income of country
How should you dress for a phone interview? (Site 1)
online content
Answers
Answer:
You should at least have a nice top on because only the camera will see that. If you are a girl you could just wear a dress, probably a black one because that is what I wore to my interview yesterday because there is no pattern or anything it's just a plain black one, but that was in person. if you're a guy you need to wear a suit and tie,but you could probably just wear shorts because they won't see the bottom half of you
Explanation:
I hope this helps out a little bit :-)
An interview is a formal process by which an employee is assessed for his/her performance by the employer.
For a phone interview, one should be dressed properly as the interviewer can see you through the camera.
For a girl, you should be dressed nicely and no revealing or extra shiny clothes should be wore.
In the case of a man, one should be properly dressed in suits or formal shirts.
Try to wear dark black or blue coloured clothes and sit in a properly lighted area.
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3. Which of the following would NOT be a factor that affects which products a retailer chooses
to select to offer in a store?
A. Local customer preferences
B. Manufacturer incentives
C. Employee preferences
D. The store's location
ailor's
Answers
Employee choices wouldn't have any influence on the products a retailer selects.
What elements influence retail stores? What are the top five most crucial elements for a retail market?Location, marketing, shop design and appearance, service and selection, and bundle selling are the five pillars of retail success. Let's examine how each of them can assist you in starting a profitable retail business.
What are the seven elements that influence where an industry is located?The seven variables that affect whether or not an industry is established are: the supply of materials, labour, capital, market access, the availability of a plentiful supply of electricity, transport modes like railroads and roads for the road transport of finished goods and raw materials, and the availability of land.
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Basu received a letter from the IRS that gave him the choice of (1) paying a proposed deficiency or (2) filing a petition with the U.S. Tax Court. Basu received the: Multiple Choice 30-day letter. 90-day letter. Appeals letter. Tax adjustment letter. None of the choices are correct.
Answers
From the explanation below, the letter received by Basu is called a 90-day letter.
What is a 90-day letter?A 90-day letter can be described as an IRS notification in which it stated that there was a discrepancy or error in the taxes of an individual, and that they would be levied until a petition is submitted.
If the taxpayer does not respond within 90 days, the audit inadequacies will result in a reassessment.
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free hhahahahahhaha ok just for yalll
Answers
Answer:
why?
Explanation:
Answer:
nice thanks mark me brainiest
Explanation:
in an average year, the price of a typical stock fluctuates up and down by about ____ percent.
Answers
In an average year, the price of a typical stock experiences fluctuations due to various factors such as market forces, economic conditions, and company performance. These fluctuations can result in the stock's value going up and down by approximately 50 percent.
Market forces, such as supply and demand, play a crucial role in determining stock prices. When there are more buyers than sellers, the demand for a stock increases, pushing its price up. Conversely, when there are more sellers than buyers, the demand decreases, causing the price to drop.
Economic conditions also significantly impact stock prices. In a thriving economy, investors are more optimistic, and businesses tend to perform well, leading to higher stock prices. On the other hand, during economic downturns or recessions, investors may become more risk-averse, and businesses may struggle, resulting in decreased stock prices.
In conclusion, the price of a typical stock fluctuates up and down by about 50 percent in an average year due to a combination of market forces, economic conditions, and company performance. These factors work together to determine the overall demand for a stock and, ultimately, its value in the market.
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As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P = 300,000 – 400Q and P = 500,000 – 275Q, respectively. Your cost function is C(Q) = 140,000 + 240,000Q. How many new homes should you build, and what profits can you expect?
Answers
The number of new houses that will be built is 200 while the profit is $13860000.
From the information given, the expected demand function will be:
= 60% × (300000 - 400Q) + 40% × (500000 - 275Q)
= 380000 - 350Q
Therefore, P = 380000 - 350Q
Since profit is the difference between the revenue and cost. This will be:
= (380000 - 350Q) × Q - (140000 + 240000Q)
Therefore, maximizing the profit will be:
380000 - 350 × 2Q - 240000 = Q
Q = 200
Therefore, profit will be:
= (380000 - 350Q) × Q - (140000 + 240000Q)
= (380000 - 350 × 200) × 200 - (140000 + 240000 × 200)
= 13,860,000
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