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lilavasa [31]
2 years ago
14

If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopo

list should ________ to maximize profits.
Business
1 answer:
MatroZZZ [7]2 years ago
7 0

If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production and increase the price to maximize profits.

<h3>Who is a monopolist?</h3>

monopolist serves as the entity that dominates a particular market in term of production, he is the one that has the highest control of the market and make the most profits.

It should be noted that If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production .

Learn more about monopolist on:

brainly.com/question/13113415

#SPJ1

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Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4
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Answer:

$5.73(Approx).

Explanation:

Given:

= 0.32

Growth rate = 25% = 0.25

Number of year = 4

Growth rate after 4 year = 3% = 0.03

Required rate of return = 15% = 0.15

Computation of divined in 4 year:

Annual\ dividend\ paid(1+growth\ rate)^n\\\\0.32(1+0.25)^4\\\\0.32(1.25)^4\\\\0.32(2.44140625)\\\\0.78125

Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]

Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]  

Price of stock after year 4 = [0.8046875] / [0.12]  

Price of stock after year 4 = $6.70572917

Present value = Future value / (1+r)^n

 Present value = $6.70572917 / (1.15)^4

 Present value = $6.70572917 / (1.16985856)

$5.73(Approx).

6 0
3 years ago
Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000
fiasKO [112]

Answer:

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Explanation:

a. Barb will earn compound interest both will aearn compound interest.

b. Barb will earn more interest the first year than Andy both are compound annualy. The first year both will earn the same amount of interest.

c. Barb will earn interest on interest yes because she don't retire the interest and reinvest it.

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan

d. After five years, Andy will have more money in his account than Barb. No because he spend his interest.

e. Andy will earn more interest the first year than Barb both are compound annualy. The first year both will earn the same amount of interest.

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3 years ago
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$0, income statement s not affected.

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