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2 years ago

Which of the following are the characteristics of a competitive market? (Check all that apply.)

1 answer:

5 0

A competitive market refers to a market where there is no monopoly of producers of goods and services, therefore, competition is high because they all have mission to satisfy the wants of a large consumers.

The characteristics of a competitive market are:

Homogeneity of product: The product are made by different producers and encourages competition.

There are existence of many buyers and sellers in the market.

There is an access to derive perfect information on price of a product at any outlet in the market.

There are no charges for transaction costs in a competitive market

No barriers to entry into or exit.

In conclusion, there is no producers which can affect the market price through its supplying rate because there are excess supply of similar product in the market.

Learn more about competitive market here

<em>brainly.com/question/7024827</em>

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Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is Can$1.14.

andreyandreev [35.5K]

Answer:

Explanation:

Given that:

1$ = Can $1.12

It takes a value of 1 U.S dollar to have 1.12 Canadian dollars. This signifies that the U.S dollar is worth more than Canadian dollars.

Assuming that the absolute Purchasing Power Parity PPP holds,

Since 1$ = Can $1.12, the cost in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:

= $\dfrac{2.85}{1.12}$

= $2.545

Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.

This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.

The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.

Canada has higher interest rates. This determined by using the formula:

= $\dfrac{(\dfrac{Fwd}{Spot }-1)}{n}$

where; n= numbers of years = 6 month/12 month = 0.5 year

Then;

$=\dfrac{(\dfrac{1.14}{1.12 }-1)}{0.5}$

$= \dfrac{(1.0178-1)}{0.5}$

$= \dfrac{(0.0178)}{0.5}$

= 0.0356

= 3.56%

6 0

3 years ago

Which of the following is an example of Mexico and Israel agreeing to eliminate certain tariffs and trade barriers on products s

Ganezh [65]

A free-trade agreement

8 0

3 years ago

Read 2 more answers

Suppose that when the average college student's income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50

kvasek [131]

Answer:

Explanation:

Pizza quantity Change = 60-50 = 10

Income change = $12000 - $10000 = $2000

Mid point of Quantity of Pizza = (50+60)/2 = 55

Mid point of income = ($12000 + $10000)/2 = $11000

Income elasticity = 10*11,000/2000*55 = 110,000/110,000=1

Pizza is a unit elastic normal good, because percentage change in income = % change in pizza quantity

7 0

3 years ago

You would like to have extra spending money, so you decide to work part time at the local gym. The job pays you $15 per hour and

iren [92.7K]

Answer:

Gross Pay 300 dollar

Federal Income Tax $ 30

FICA $ 22.95

SUTA $ 9

Net Pay: 238.05

As a percentage of gross pay: 79.35%

Explanation:

Gross pay:

20 hours x $15 each = $ 300

Taxes:

income tax: 300 x 10% = 30

FICA 300 x 7.65% = 22.95

SUTA taxes 300 x 3% = 9

Net pay 300 - 30 - 22.95 - 9 = 238.05

Net pay as a percentage of gross pay:

238.05 / 300 = 0.7935 = 79.35%

6 0

3 years ago

If you expect the target firm to grow at your calculated annual growth rate for the next four years (2021- 2024) and then beyond

frez [133]

Answer:

The question is incomplete, so I looked for a similar one:

FCF 2018 = ($4,923,478 - $1,033,930 + $605,752) - ($2,173,000 + $605,752) - ($8,501,348 - $7,600,543) = $4,495,300 - $2,778,752 - $900,805 = $815,743

FCF 2019 = ($5,960,124 - $1,251,626 + $1,239,239) - ($2,580,000 + $1,239,239) - ($7,210,800 - $5,905,791) = $5,947,737 - $3,819,239 - $1,305,009 = $823,849

FCF 2020 = ($5,998,321 - $1,259,647 + $239,895) - ($1,903,500 + $239,895) - ($5,975,324 - $4,116,364) = $4,978,569 - $2,143,395 - $1,858,960= $976,214

average annual growth rate 2018 - 2020 = {[(823,849 - 815,743)/815,743] + [(976,214 - 823,849)/823,849]} / 2 = (0.99% + 18.49%) / 2 = 9.74%

FCF 2021 = $976,214 x 1.0974 = $1,071,297

FCF 2022 = $1,071,297 x 1.0974 = $1,175,642

FCF 2023 = $1,175,642 x 1.02 = $1,199,154

first we must calculate the terminal value in 2022 = $1,199,154 / (10.5% - 2%) = $14,107,699

the firm's current value = $1,071,297/1.105 + $1,175,642/1.105² + $14,107,699/1.105² = $13,486,312

7 0

3 years ago