The law of diminishing returns only applies in the Short Run‚ when only one factor of production is variable and can be increased. The other factors of production are fixed. Thus as the variable factor of production is increased the marginal product of that factor will rise at first‚ but will at some point begin to fall. Returns to scale can only occur when no factors of production are fixed. If the quantities of all of the factors of production are increased‚ then output will also increase. However
Free Economics Economics of production
Brothers Analysis of Wal-Mart Stock Introduction I chose to monitor Wal-Mart stock throughout the semester. I began collecting my information every Friday afternoon after the market closed‚ beginning May 24‚ 2013 and ending July 5‚ 2013. I used Yahoo Finance to collect all of my data (Yahoo ‚ n.d.). Wal-Mart stock throughout my study fluctuated but stayed at a constant price. The fluctuation in price can be due in part to competition when compared to the stock of other competitors. The retail
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Cassandra Merrill PHI-105 Instructor: Eng-105 Composition I March 1‚ 2013 Explaining Relationships A relationship is referred to as a correlation between two variables about the types of relationships; it could mean two things‚ the nature of the relationship or the nature of the relationship with the structure of it. For example; my nine year old son and the computer have been companions since he was four years old. The reason he and the computer are like companions is because he has been
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Chapter 9 The Valuation of Stock TRUE/FALSE T 1. The expected return depends on future dividends and future price appreciation. T 2. The dividend-growth valuation model depends on dividends and the required rate of return. F 3. The dividend‑growth model includes both the current and past years’ dividends. T 4. If the anticipated return exceeds the required rate of return‚ the investor should buy the stock. F 5. The dividend‑growth model requires that dividends
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study tries to determine whether the Indian stock market is efficient by examining if the stock returns follow a random walk. Following previous studies‚ we use autocorrelation‚ the Box-Ljung test statistics and the run test and find that the Indian stock market was not efficient in the weak form during the testing period. The results suggest that the stock prices in India do not reflect all the information in the past stock prices and abnormal returns can be achieved by investors exploiting the
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One theory that could explain Shawn’s behavior could be the attachment theory. Growing up everyone thought they had a great family but no one knew his mother was an alcoholic. Shawn most likely did not form an attachment to his mom which caused him to lack trust and respect for others- particularly his father. Another way to look at Shawn would be through the anti-social personality theory. Shawn shows absolutely no remorse for what he did to his father or to his roommate. Additionally‚ he continuously
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Valuation of Common Stock Ashok Banerjee Common (Equity) Stocks • Because common stock never matures‚ today’s value is the present value of an infinite stream of cash flows (i.e.‚ dividend). • But dividends are not fixed. • Not knowing the amount of the dividends—or even if there will be future dividends— makes it difficult to determine the value of common stock. • So what are we to do? Valuation Models • Dividend Valuation Model (DVM): – Constant dividend: Let D be the constant DPS: The required
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Assignment No 6 Diversification in Stock Portfolios Introduction Diversification is one of the key components of a successful investment portfolio. Almost all experts advise the avoidance of concentrating all of your investments in one type. However‚ many investors forget about diversification once they see a financially attractive stock and concentrate all of their assets in it. Other investors make a similar mistake and being influenced by their
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Law of Diminishing Returns The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run‚ increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input‚ but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded. Let’s look at a simple short-run production process where there is a fixed input
Free Economics Economics of production
Evolution and Human Behavior 24 (2003) 153 – 172 Explaining altruistic behavior in humans Herbert Gintisa‚b‚*‚ Samuel Bowlesa‚b‚ Robert Boydc‚ Ernst Fehrd a Santa Fe Institute‚ 1399 Hyde Park Road‚ Santa Fe‚ NM 87501‚ USA Department of Economics‚ University of Massachusetts‚ Amherst‚ MA 01003‚ USA c Department of Anthropology‚ University of California at Los Angeles‚ 405 Hilgard Avenue‚ Box 951361 Los Angeles‚ CA 90095-1361‚ USA d University of Zurich‚ Blumlisalpstrae 10 CH-8006 Zurich
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