1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
adell [148]
1 year ago
4

An effective price ceiling in a competitive industry will mean that which of the following is true?

Business
1 answer:
MA_775_DIABLO [31]1 year ago
7 0

C) In a competitive market, an effective price ceiling will result in marginal cost and marginal revenue being equal.

<h3><u>What is the price cap?</u></h3>

The imposed maximum price a seller is permitted to charge for a good or service is known as a price ceiling. Price ceilings are typically applied to necessities like food and energy products when they become unaffordable for regular consumers.

Price ceilings are typically established by law. In essence, a price cap is a form of price control. Price caps can be useful for making necessities affordable, if only temporarily. However, economists question the long-term value of such ceilings.

There are numerous instances of price caps imposed by the government, typically for goods that are regarded as necessary or essential. Here are a few typical instances of price ceilings.

  • Ceilings on rent
  • Fuel and food price ceilings
  • Cost ceilings for prescription medications and lab tests.

Learn more about the price ceiling with the help of the given link:

brainly.com/question/27169723

#SPJ13

You might be interested in
If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there
Llana [10]
<span>If the actual rate is higher than the natural rate, the economy is in a recession (also know as a slump).

... by definition there is a recession.</span>
7 0
3 years ago
Suppose you were writing a social media plan for Two Scoops, with two objectives: to improve brand awareness in new markets and
Bas_tet [7]

The competitive environment and consideration set themselves are further quantitative metrics of brand awareness. You can accomplish this by outlining your brand and the brands of your rivals, then asking people to rate their familiarity with each brand on a qualitative scale ranging from "well known" to "totally unknown."

<h2>What is the role of quantitative research?</h2>
  • Quantitative research is beneficial since it offers precise numbers for comparison and referencing. We occasionally collaborate with Research, a California-based market research company, to assist us in designing and putting into practice quantitative research tactics since we have faith in their knowledge in this field.
  • We can confidently identify trends, quantify feelings and behaviors, and comprehend the perception of a destination brand based on information from a representative sample of the area's population by conducting statistically accurate, multi-modal surveys (or a regional population if doing competitive or key market research).
<h2>What is the role of qualitative research?</h2>
  • Comparatively, qualitative research is far more subtle. Instead of stating an actual reality, it "summarizes and infers." Qualitative research sheds light on the history of your brand and the people it stands for, while quantitative research serves the purpose of giving you the hard data you need to support your decisions.

Learn  more about Qualitative research at <u><em>brainly.com/question/13498255?referrer=searchResults</em></u>

#SJP4

3 0
3 years ago
Before tuberculosis was understood to be a communicable disease, and before the discovery of antibiotics to treat it, a major ou
uranmaximum [27]
<span>Reduction in a nation's labor force would long-run aggregate supply curse to the left, representing a reduction in labor. This would tend to drive up labor costs over time. Presumably, the demand curve would remain static in the short-term. However, such a reduction would also impact the nation's consumption and thereby reduce the demand for products. This would in turn drive a decreased demand for labor (leftward shift) and apply downward pressure to wages. The answer to this depends on whether the questions is regarding short-term, medium-term or long-term labor supply/demand curve.</span>
7 0
4 years ago
Taylor inc., the company you work for, is considering a new project whose data are shown below. what is the project's year 1 cas
arsen [322]

Answer:

$27,175

Explanation:

Year 1

Sales                                  $62,500

Depreciation        $8,000

Operating Cost    $25,000

Total Expense                    <u>($33,000)</u>

Income Before tax              $29,500

Tax 35%                              <u>($10,325)</u>

Net Income                          <u>$19,175</u>

Interest Expense is not relevant to the project, It is a financing decision which will not be part of project calculation.

As the Net income includes the deduction of non cash item of depreciation. so, it will be added back to calculate the cash flow.

Cash Flow in year 1 = Net Income + Depreciation = $19,175 + $8,000 = $27,175

5 0
4 years ago
Read 2 more answers
Another company plans to issue 20-year bonds with a face value of $1,000 and an annual coupon rate of 10%. The market price of s
Lorico [155]

The after-tax cost of debt is 6.28%.  Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.

<h3>What is After-tax cost?</h3>
  • After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
  • WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
  • WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).

Therefore,

The after-tax cost of debt is 6.28%.

FV = -$1,000

PMT = -$100

N = 20 years

PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.

Compute I/Y = 9.511%

After-tax cost of debt = 9.511%×(1-.34) = 6.28%

To learn more about After-tax cost, refer to:

brainly.com/question/25790997

#SPJ4

6 0
2 years ago
Other questions:
  • Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company
    11·1 answer
  • What is the difference between streak and color?
    7·2 answers
  • Walter builds birdhouses. he spends $5 on the materials for each birdhouse. he can build one in 30 minutes. he is semi-retired b
    15·1 answer
  • Which of the following payday frequencies provides employees with the smoothest cash flow?
    14·1 answer
  • To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyze
    5·2 answers
  • Back-office operations deal directly with the customer. true false
    9·1 answer
  • The balance column in a ledger account is: Multiple Choice An account entered on the balance sheet. A column for showing the bal
    10·1 answer
  • Gaber Land Corp. is evaluating a 4-acre (front 2-acre and back 2-acre) waterfront property for development. Gaber is considering
    15·1 answer
  • The Sarbanes-Oxley Act was passed in an effort to:_________
    10·1 answer
  • $444,567 Revenue, $400,500 Expenses. Net Profit?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!