All categories

2 years ago

If foreign firms begin supplying the product, increasing the number of competitors, it is likely that:____.

1 answer:

5 0

If foreign firms begin supplying the product, increasing the number of competitors, it is likely that economic profit will fall.

As the variety of firms increases, the price that is regular with equilibrium increases, to the monopoly rate, but the minimum price decreases. On the other hand, if marginal search prices decrease with the number of searches, equilibrium, if it exists, is characterized through a price distribution.

The number of promoting corporations also has an effect on the probable outcome of oligopoly opposition. As the wide variety of firms increases, the marketplace equilibrium moves in the direction of the equilibrium that would be expected in a superbly aggressive market of firms with equal aggregate manufacturing assets.

An economic profit or loss is the distinction between the sales received from the sale of an output and the expenses of all inputs used, as well as any opportunity charges. In calculating economic profit, possibility charges and explicit fees are deducted from sales earned.

Learn more about economic profit here brainly.com/question/24477585

#SPJ4

You might be interested in

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist

iris [78.8K]

Answer:

a. With New Stock = 8.307%

b. With Old stock = 7.971%

Explanation:

The weighted average cost of capital (WACC) defines the cost rate that blends the capital structure cost including equity, debt, and preferred stock.

Requirement A

If it uses retained earnings as its source of common equity,

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{e}$ = 11.51%

We know, the weighted average cost of capital (WACC) =

$W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{e}$ x $R_{e}$

= (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 11.51%)

= 1.656% + 0.32% + 6.3305%

= 8.307%

Requirement B

If it has to issue new common stock, the weighted average cost of capital (WACC) = $W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{s}$ x $R_{s}$

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{s}$ = 10.9%

Therefore, putting the value in the equation,

WACC = (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 10.9%)

WACC = 1.656% + 0.32% + 5.995%

WACC = 7.971%

4 0

3 years ago

The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials pu

posledela

Answer:

Direct material used= $88,600

Explanation:

Giving the following information:

Beginning raw materials inventory$12,000

Raw materials purchase 88,000

Ending raw materials inventory 11,400

To calculate the direct material used in production, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 12,000 + 88,000 - 11,400

Direct material used= $88,600

3 0

3 years ago

There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the er

xenn [34]

Answer:

Yes the inspector should be hired

Explanation:

Defective average = 0.03

inspection rate = 30 per hour

Cost of inspector = 8 per hour

Correction cost is $10 each

No inspection = 9/30

= 0.300

Inspector = 8/30

= 2.67

Yes the inspector should be hired

5 0

3 years ago

Porque no tengo amigos en brainly

ira [324]

U can add me Xd if u want

6 0

3 years ago

Read 2 more answers

An educational institution that sells shares to investors to make money

rodikova [14]

Incomplete question. Hence, In answered from a general economic perspective.

Answer:

is having an IPO

Explanation:

Of course, an IPO (Initial Public Offering) is one method that can be used to make/raise money by a business. Usually, the institution places its shares of stocks open for sale to investors.

Therefore, we can infer from the above statement that the educational institution was formerly privately owned, but since it started to sell its shares to investors so as to make money, it is having an IPO.

7 0

3 years ago