Compared to perfect competition, when a consumer purchases a product from a monopolistically competitive firm, the consumer benefits from purchasing a product that is more closely suited to their tastesis more closely suited to their tastes.
In the monetary concept, best competition happens when all agencies promote identical products, marketplace proportion does now not affect the rate, groups are able to input or exit without barrier, consumers have the best or complete records, and companies can not determine fees.
In economics, specifically trendy equilibrium idea, a great marketplace, additionally called an atomistic marketplace, is described by several idealizing situations, collectively referred to as ideal opposition, or atomistic competition.
Perfect competition is a monetary term that refers to a theoretical marketplace shape in which all providers are identical and usual supply and demand are in equilibrium. For instance, if there are numerous firms producing a commodity and no person firm has a aggressive gain, there is ideal opposition.
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The capital expenditure based on the information given is justified.
<h3>How to illustrate the information?</h3>
It should be noted that capital expenditure are the expenditure that are used to create revenue for the company.
Every company in the world needs to improve its existing products and introduce new products. Therefore, marketing and RnD expenditure will they continue to be a dominant player in the industry. Therefore, capital expenditure is justified
One of the ways to improve fixed cost is to have strict control over costs, identify and remove unnecessary costs from the system. Also, one can reduce the number of salaried employees on staff and then shop around for lower insurance premiums.
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Answer:
A) 5.0%
Explanation:
AEC Company expects to pay a dividend over the next year of $2 at a stock price of $20 per share, thus the dividend rate over next year = $2/ $20 = 10%
The WACC is 12%, the company is financed by 30% debt and 70% equity, and the cost of debt is 5%;
WACC 12%= 30% x cost of debt 5% + 70% x cost of equity
->Cost of equity = (12% -30%*5%)/70% = 15%
Thus expected growth rate of dividend = Cost of equity 15% - dividend rate over next year 10% = 5%
Answer:
The answer is: The owner's revenue will rise because newspaper demand is price inelastic.
Explanation:
Although the question doesn't specify the price elasticity of newspapers, different papers and essays around the world concluded that it is very inelastic. So an increase in the price of newspapers will decrease the quantity demanded of news papers in a very small proportion. So it is safe to say that if the owner of the newspaper stand raises the price of newspapers, his total revenue will increase since its demand is price inelastic.
