Senate Inc

question 14

Multiple Choice

Senate Inc.is considering two alternative methods for producing playing cards.Method 1 involves using a machine with a fixed cost (mainly depreciation) of $12,500 and variable costs of $1.00 per deck of cards.Method 2 would use a less expensive machine with a fixed cost of only $5,000,but it would require a variable cost of $1.50 per deck.The sales price per deck would be the same under each method.At what unit output level would the two methods provide the same operating income (EBIT) ?

• A) 17,100
• B) 15,300
• C) 15,000
• D) 12,750
• E) 13,500

Identify the limitations and ongoing debates surrounding market efficiency.

Distinguish between different types of stock price predictions, including random walk theory and submartingale expectations.

Understand the principles and assumptions underlying technical analysis.

Analyze the effect of news and public information on stock prices and how this aligns with or contradicts market efficiency.

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Definitions:

Psychiatrists

Medical doctors specialized in diagnosing, treating, and preventing mental, emotional, and behavioral disorders.

Biomedical Therapy

Treatments for mental disorders that involve physiological interventions, such as medication or surgery.

Medical Degree

A medical degree is an academic qualification awarded to students upon completion of a course of study in medicine, qualifying them to become professional medical practitioners.

Insight Therapy

A type of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses to change behavior.