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2 years ago

What enables a oligopoly to form within a market

Business

1 answer:

arlik [135]2 years ago

4 0

It would be too costly to launch a competing business To establish Oligopoly in the market.

<h3>What is a market?</h3>

The entire number of buyers and sellers in the area or region under consideration is referred to as the market.

A market structure known as an oligopoly has a small number of enterprises, none of which can prevent the others from having a large impact.

The market share of the major companies is calculated using the concentration ratio.

Learn more about the oligopoly market:

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Nookie1986 [14]

the most satisfied, according to Glassdoor's study, are: Health insurance. Vacation and PTO. Pension plans, 401(k) & other retirement plans.

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2 years ago

Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 6 percent 4 years ago. The bond cu

kirill [66]

Answer:

Explanation:

a.)

The total debt amount in Jiminy's Cricket Farm's balance sheet on the liabilities side is referred to as the book value of debt. It is calculated by be the summing up of the individual book values of the two bonds that this company has.

Total book value ;

Book value of 30 year bond = $60,000,000

Book value of the Zero-coupon bond = $35,000,000

Total book value of debt = $60 + $35 = $95,000,000

b.)

The sum of market values of the two bonds this company makes up the total market value of debt. It is calculated by multiplying the current price of the bond by the number of outstanding bonds.

Formula for market value = Price * number of bonds

30 year bond;

Number: 60,000,000/1000 = 60,000 bonds

Market value = 1.10 * 1000 *60,000 = $66,000,000

Zero-coupon bond;

Number: 35,000,000/1000 = 35,000 bonds

Market value = 0.67 * 1000 *35,000 = $23,450,000

Total market value of debt = $66,000,000 + $23,450,000 = $89,450,000

c.) Companies who have debt in their capital structure benefit from tax shield on their debt interest rates . Jiminy’s Cricket Farm has two bonds, find the average of the two rates to get after tax cost of debt.

Calculate the Pretax cost of debt first. Using a financial calculator, input the following;

30 year bond;

N = 30*2 = 60

PV = -$66,000,000

PMT = (6%/2)* $60,000,000 = $1,800,000

FV = $60,000,000

then compute semiannual rate; CPT I/Y = 2.664%

Convert to annual rate = 5.329% (this is the pretax cost of debt)

Zero-coupon bond;

N = 8

PV = -$23,450,000

PMT = 0

FV = $35,000,000

then CPT I/Y = 5.133% (this is the pretax cost of debt)

Next, find the average pretax cost of debt = (5.329% + 5.133%) /2 = 5.231%

After tax cost of debt = pretax cost of debt (1-tax)

After tax cost of debt = 5.231% (1-0.23) = 4.03%

5 0

3 years ago

Why would the top-level managers at Nutzandboltz, a hardware company, decide to invest free cash flow in product lines such as c

faltersainse [42]

Answer:

"To increase the level of diversification" is the right answer.

Explanation:

The justification why and how the high-level managers from Nutzandboltz, a technology firm, intend to invest earnings per share throughout market segments including such merchandise as well as accessories, would be to maximize the long term growth ratio.
The other explanation may be to minimize the chances of their jobs.

So that the above is the correct answer.

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3 years ago

Matching is:________.

Kay [80]

Answer:

A. It is a valuation method.

Explanation:

The matching principle is used to assign same costs with the same revenues. For example the inventory bought to make the product would be assigned like wise to assure the guideline of matching principle.

It is a valuation method.

It is used to evaluate the accounting procedures.

For example let us assume that we are selling candies. But the advertisement is run once the candies have been manufactured and sealed. So the matching principle states that the advertisement expenses to be included in the income statement having the corresponding stock of candies manufactured and sold.

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2 years ago

1. Alejandro and Roger are working on a group project for class that requires writing a paper and designing charts to explain th

Bezzdna [24]

Answer:

Alejandro´s opportunity cost is 2/3 of a chart.

Roger´s opportunity cost is 1/2 of a chart.

Explanation:

The cost of opportunity represent the benefits that you misses out on when choosing one alternative over another.

In this case , we can say that Alejandro and Roger can produce 2 product. And if they produce one , they loose the possibility of producing the other.

We can Illustrate this situation with a production possibility frontiers graph and if we increase the quantity produced of one good, will decrease the other, because the limited resources.

Alejandro produce 3 three pages of the paper in the same time it takes him to create two charts. We use cross multiplication to get how many charts Alejandro produce at the same time he produce a single page

1___x

3___2 so x= 1x2/3

So , in the time he produce a single page of the essay, he could produce 2/3 of a chart. This is the cost opportunity.

Roger can write two pages of the paper in the same time he can produce a single chart. So, in the time he produce a single page of the essay he could make half of a chart.

Download xlsx

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3 years ago