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1 year ago

If the industry were perfectly competitive the quantity of output produced would be?

1 answer:

3 0

If the graph represented a perfectly competitive industry, then the quantity of output produced would be 160 units.

<h3 /><h3>What is the quantity produced in a perfectly competitive industry?</h3>

Companies in any industry would try to maximize their profit by producing at a point where marginal revenue is the same as marginal cost.

This is the same in perfectly competitive industries like the ones shown in the graph.

The difference is that, in a perfect competition market, the demand curve is the same as the price which is also the same as the marginal revenue curve.

This means that the point of maximizing profit in a perfectly competitive industry is:

P = MR = MC

The point where the Marginal revenue curve intersects with the Marginal cost curve is 160 units as the marginal revenue curve is the demand curve.

In conclusion, the output would be 160 units.

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Answer:

cash 96,535 debit

discount on BP 3,465 debit

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We need to determinate the price at which the bonds were issued:

Which is the present value of the coupon payment and maturity

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Coupon payment: 100,000 x 10% / 2 = 5,000

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rate 0.06 (12% annual / 2 = 6% semiannual)

$5000 \times \frac{1-(1+0.06)^{-4} }{0.06} = PV\\$

PV $17,325.5281

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PV 79,209.37

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PV m $79,209.3663

Total $96,534.8944

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Results are below.

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