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2 years ago

From the point-of-view of the consumer, bertrand oligopoly is ________ since it leads to an outcome similar to

1 answer:

8 0

From the point of view of the consumer, Bertrand oligopoly is <u>undesirable</u> since it leads to an outcome similar to zero.

An oligopoly is a market where there are a small number of firms who realize they are interdependent in their pricing and output policies. In this market, the number of firms are small enough to give each firm some market power.

Bertrand model of oligopoly is a model of competition in which two or more firms produce a homogenous good and compete in prices. However, this competition in prices where the goods are perfect substitutes, ends with the firms selling their goods at marginal costs and thus making zero profits out of it.

Hence, from the point of view of the consumer, Bertrand oligopoly is undesirable.

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Explanation: I have tried this before and it work.

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3 years ago

AZ Products has 375,000 shares of common stock outstanding at a market price of $35 a share. Next year's annual dividend is expe

My name is Ann [436]

Answer:

The firm's weighted average cost of capital 5.81%

Explanation:

In order toTo calculate WACC, we need to calculate the cost of equity and after-tax cost of debt. The WACC can be calculated with the use of following formula:

WACC = After-Tax Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity

Where,

After-Tax Cost of Debt = Pretax Yield*(1-Tax Rate)

Market Value of Debt = Outstanding Bonds*Par Value*Current Selling Percentage

Cost of Equity = D1/Current Market Price + Growth Rate

Market Value of Equity = Number of Common Shares Outstanding*Current Market Price

Weight of Debt = Market Value of Debt/(Market Value of Debt + Market Value of Equity)

Weight of Equity = Market Value of Equity/(Market Value of Debt + Market Value of Equity)

Therefore, Market Value of Debt = 7,500*1,000*98.60% = $7,395,000

Market Value of Equity = 375,000*35 = $13,125,000

Weight of Debt = 7,395,000/(13,125,000 + 7,395,000)

Weight of Equity =$13,125,000 /($13,125,000 + 7,395,000)

Cost of Equity = 1.50/35 + 2% = 6.28% 0.01801

After-Tax Cost of Debt = 7.65*(1-34%) = 5.05%

Using the values calculated above in the formula for WACC, we get,

WACC = 5.05%*7,395,000/(13,125,000 + 7,395,000) + 6.28% *$13,125,000/($13,125,000 + 7,395,000) = 5.81%

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4 years ago

Hector Aguerra is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in Saud

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Answer:

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Hector is best suited to work as as a sales or advertising agent due to his high selling skills. Sales agents are usually paid in commissions. He would also be able to earn the type of money he wants by choosing the number of hours he chooses to work

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3 years ago

Finn Corporation produces inflatable rafts for recreational use. The company has heard about lean accounting and is anxious to f

never [62]

Answer:

Rework-Internal Failure Cost $37,440

Inspecting incoming raw materials-Prevention $172,800

Warranty work-External Failure Cost $25,920

Process Improvement effort-Appraisal $51,840

Total activity cost $288,000

Explanation:

Calculation to recreate the quality activity analysis

QUALITY ACTIVITY ANALYSIS

Quality Cost classification Activity Cost

Rework-Internal Failure Cost $37,440

($288,000*13%)

Inspecting incoming raw materials-Prevention $172,800 ($288,000*60%)

Warranty work-External Failure Cost $25,920 ($288,000*9%)

Process Improvement effort-Appraisal $51,840 ($288,000*18%)

Total activity cost $288,000

($37,440+$172,800+$25,920+$51,840)

Therefore the quality activity analysis recreation are :

Rework-Internal Failure Cost $37,440

Inspecting incoming raw materials-Prevention $172,800

Warranty work-External Failure Cost $25,920

Process Improvement effort-Appraisal $51,840

Total activity cost $288,000

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3 years ago

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Angelina_Jolie [31]

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<h3>What is Employee Retirement Income Security Act?</h3>

The Employee Retirement Income Security Act serves as an act of 1974 that contains rules on the federal income tax to favor employees.

This act, provides employee with benefit plans and a protection against wicked employers.

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2 years ago