After you reviewed the six steps with Paula, she asked for an example of how to define the decision situation as she decides whether Gingerforge should start manufacturing patio furniture. Which of the following is the correct example to give to Paula?

a. Paula would make a list of actions Gingerforge might take, such as leaving its product line as it is, adding patio furniture, or deciding to enter some other niche market (such as manufacturing wrought-iron bird cages).

b. Paula would assess each option in terms of feasibility, satisfactoriness, and consequences; she will want to consider how difficult or costly each option would be to implement and whether each option would provide a satisfactory financial return.

c. Paula would decide that Gingerforge should keep its product line as it is to avoid the financial risk of making new products that may not sell, if its priority is to strictly adhere to its current budget and the company is risk averse.

d. Paula would articulate the specific environmental stimulus the company needs to respond to: the entry of a competitor into the patio furniture market.

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.