Answer:
9.4%
Explanation:
Initial investment=$22,000+$22,000=$44,000
number of shares bought=$44,000/$110(the investor paid $55 out of every $110)
number of shares bought=400
Increase in share in one year=$110*8%=$8.80
loan interest on each share=$55*6.6%=$3.63
rate of return=(increase in share price-loan interest)/initial amount invested
rate of return=($8.80-$3.63)/$55
rate of return=9.4%
Answer:
The profit maximizing output level declines by 2.5 units and the price rises by $100.
Explanation:
In a monopoly market the inverse demand curve is given as,
P = 1,200 - 40Q
The marginal cost of production of the last unit is $200.
The total revenue is
= ![Price\times Quantity](https://tex.z-dn.net/?f=Price%5Ctimes%20Quantity)
= ![1,200Q - 40Q^{2}](https://tex.z-dn.net/?f=1%2C200Q%20-%2040Q%5E%7B2%7D)
The marginal revenue of the last unit is
= ![\frac{d}{dx} TR](https://tex.z-dn.net/?f=%5Cfrac%7Bd%7D%7Bdx%7D%20TR)
= 1,200 - 80Q
At equilibrium the marginal revenue is equal to marginal price,
MR = MC
1,200 - 80Q = 200
80Q = 1,000
Q = 12.5
Putting the value of Q in the inverse demand function,
P = ![1,200 - 40\times 12.5](https://tex.z-dn.net/?f=1%2C200%20-%2040%5Ctimes%2012.5)
P = $700
Now, if the marginal cost rises to $400,
At equilibrium the marginal revenue is equal to marginal price,
MR = MC
1,200 - 80Q = 400
80Q = 800
Q = 10
Putting the value of Q in the inverse demand function,
P = ![1,200 - 40\times 10](https://tex.z-dn.net/?f=1%2C200%20-%2040%5Ctimes%2010)
P = $800
Price is taken to be a given by an individual firm selling in a purely competitive market because each seller supplies a negligible fraction of total market.
Purely competitive market refers to a marketing situation in which there are a large number of sellers of a product which cannot be differentiated selling a standardized product and therefore, no single firm has a significant influence on the product price. It is characterized, furthermore, by ease of entry for new companies into the market and perfect market information. Hence, the sellers in such a market are considered to be price takers. Examples of purely competitive market are agricultural products such as wheat or corn.
Learn more about Purely competitive market:
brainly.com/question/15176320
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Answer:
Oil is not recommended for cooking fresh pasta
Explanation:
Oil is not recommended for cooking fresh pasta
Hope this helps