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taurus [48]
2 years ago
13

Under perfect competition, any profit-maximizing producer faces a market price equal to its?

Business
1 answer:
KATRIN_1 [288]2 years ago
7 0

Under perfect competition, any profit-maximizing producer faces a market price equal to its Marginal cost.

    A perfect competition, often referred to as an atomistic market, is defined by various idealizing criteria, which are together referred to as perfect competition, or atomistic competition, in economics, specifically general equilibrium theory.

   Any business that seeks to maximize its profits must contend with a market price (P = MC) that is equal to its marginal cost. This suggests that the price of a factor is equal to its marginal revenue product. It enables the supply curve, on which the neoclassical approach is based, to be derived. A monopoly does not have a supply curve for the same reason. Except in very limited circumstances like monopolistic competition, the abandoning of price taking makes it extremely difficult to demonstrate an universal equilibrium.

To learn more about perfect competition click here:

brainly.com/question/28081306

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You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think t
Ira Lisetskai [31]

Answer:

sell 1.714

Explanation:

The computation of the number of contract buy or sold to hedge the position is shown below:

As we know that

Number of contracts = Hedge Ratio    

Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract

where,

Change in the value of the portfolio is

For that we need to do following calculations

Expected Drop in Index is

= (1200 - 1400) ÷ 1400    

= -14.29%    

And, Expected Loss on the portfolio is

= Beta × Expected index drop

= 0.60 × (-14.29%)    

= -8.57%    

So, the change is

= 1000000 × (-8.57%)

= -$85,700  

And, the profit is

= 200 × 250 multiplier

= 50,000

So, the hedging position is

= -$85,700 ÷ 50,000      

= -1.714  

This reflects the selling position

3 0
3 years ago
At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) b
meriva

Answer:

$6,540

Explanation:

Given:

accounts receivable of $238,000

allowance for uncollectable accounts of $600 (credit)

Also, the allowance for uncollectible accounts should be 3% of accounts receivable.

Therefore the amount of the adjustment for uncollectible accounts would be

= 3% of $238,000 - $600= $(7140-600)= $6,540

4 0
3 years ago
which factors should be considered in the process of determining an advertising budget? (choose every correct answer.)
Alex_Xolod [135]

The factors that should be considered in the process of determining an advertising budget are Firms must understand how advertising will help them meet objectives and Advertising spending will fluctuate over the course of the product life cycle.

A budget for advertising is money set aside by a business to promote its products and services. Conducting market research, having ad creatives created and produced, promoting through print, digital, and social media, launching advertising campaigns, etc. are all examples of promotional activities.

Any marketing activity a business wishes to engage in requires some financial investment. The advertising budget is crucial for this reason. It aids in comprehending the goals. Costs aid in strategy development and profit generation by raising total sales.

To learn more about advertising budget, visit the link below:

brainly.com/question/29304981

#SPJ4

The complete question is:

which factors should be considered in the process of determining an advertising budget? (choose every correct answer.)

A) Firms must understand how advertising will help them meet objectives.

B) The budget should be uniform for all products within the firm.

C) The budget should be relatively uniform throughout the product's life.

D) Advertising spending will fluctuate over the course of the product life cycle.

E) Advertising spending should depend on the previous year's sales volume.

4 0
1 year ago
Hershey has traditionally made its Kisses from solid milk chocolate. When Hershey came out with Kisses with almonds in them, thi
Anvisha [2.4K]

Answer:

Continuous Innovation.

Explanation:

This is simply known go be continuous improvement which explained as development to produce a positive result over time.

It is an iterative process of incorporating both modest, incremental and radical revolutionary improvements in processes, product designs, services and technologies.

Continuous innovation seeks not to just fulfill expectations but also create products and services that provide only imagined functions or even entirely unexpected revolutionary changes.

7 0
3 years ago
Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth
givi [52]

Answer:

P5=48.3860

Explanation:

Santa Klaus Toys

The Price of the stock 5 years from today will be :

P5=D6/(r-g)=

D0*(1+g)^6/(r-g)

Where

D0 =3

g =3.9%

r=11.7%

Hence:

P5=3*(1+3.9%)^6/(11.7%-3.9%)

P5=3*(1+0.039)^6/(0.117-0.039)

P5=3*(1.039)^6/(0.078)

P5=3.77410/0.078

P5=48.3860

6 0
3 years ago
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