Answer:
Debt = 83.19%
Equity = 16.81%
Explanation:
Given that
Market value of the equity = $4 billion
Market value of debt = $19.8 billion
Total firm capital would be
= Market value of the equity + Market value of the debt
= $4 billion + $19.8 billion
= $23.8 billion
So, the weightage of debt would be
= Market value of debt ÷ Total firm capital
= $19.8 billion ÷ $23.8 billion
= 83.19%
And, the weightage of equity is
= Market value of equity ÷ Total firm capital
= $4 billion ÷ $23.8 billion
= 16.81%
Answer:
4
Explanation:
The chi-squared test tests whether distribution of a population of something (such as people, traits etc) into categories deviates significantly from expected values.
The degrees of freedom represents the number of independent ways by which a system can change. The degree of freedom is always the number of categories being analyzed minus 1.
Therefore, the degrees of freedom in this example is 5-1 = 4
The profit-maximizing price and combined quantity of output is indicated in the demand curve by using a black point (plus symbol).
<h3>What is a cartel?</h3>
A cartel can be defined as a formal agreement between two or more business firms (producers) of a particular product or service, that's formed to control production, sales and pricing in an oligopolistic industry.
At equilibrium in a cartel, marginal revenue is equal to marginal cost (MR = MC). Thus, the profit-maximizing price and combined quantity of output should be calculated from the demand curve as illustrated in the image attached below.
Read more on cartel here: brainly.com/question/15294015
#SPJ1
<u>Complete Question:</u>
Mays and McCovey are beer-brewing companies that operate in a duopoly (two-firm oligopoly). The daily marginal cost (MC) of producing a can of beer is constant and equals $0.40 per can. Assume that neither firm had any startup costs, so marginal cost equals average total cost (ATC) for each firm.
Suppose that Mays and McCovey form a cartel, and the firms divide the output evenly. (Note: This is only for convenience; nothing in this model requires that the two companies must equally share the output.)
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and combined quantity of output if Mays and McCovey choose to work together.
Answer:
elastic.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
If demand is elastic and price is decreased, quantity demanded would increase. The increase in quantity demanded would be greater than the decrease in demand and this would lead to an increase in revenue.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.