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Gala2k [10]
3 years ago
11

When a competitive market comes under the control of a monopoly, the quantity and price change from:

Business
1 answer:
Katena32 [7]3 years ago
5 0

Answer:

  • Quantity from E to D.
  • Price from B to A

Explanation:

Firms maximise their profit by supplying at the point where marginal revenue equals marginal cost.

In a Perfect competition, the Demand curve is also the Average revenue as well as the Marginal Revenue curve. As such, the company will sell where the marginal cost curve intersects with the Demand curve which was at point E. The price will therefore be at point B.

When the firm comes under a monopoly, it will start to supply as a monopoly does. In the Monopoly, the Marginal revenue curve is less than the demand curve and so the point where the MC curve intersects with the MR curve is the quantity they will supply at. That point is D. The price will be where this quantity intersects the demand curve which is at point A

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Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has es
ValentinkaMS [17]

Based on the NOIs from Year 1 to 8, the value of the property today to Zenith Investment Company will be $13,221,383.94.

<h3>What is the value of the investment today?</h3>

Because the investment will be sold in 7 years, we need to find the terminal value from year 8 and above considering the indefinite growth rate of 3%.

Terminal value:

= Year 8 cashflow / (Return rate - Growth rate)

= 1,459,170 / (12% - 3%)

= $16,213,000

This amount should be added to the Year 7 cashflow to get:

= 16,213,000 + 1,419,000

= $17,632,000

The value today can be found by taking all the cashflows to their present value and summing them:

= 1,240,000/ 1.12 +  1,240,000 / 1.12² +  1,240,000 / 1.12³ + 1,280,000 / 1.12⁴ +  1,330,000 / 1.12⁵ +  1,380,000/ 1.12⁶ +  17,632,000⁷

= $13,221,383.94

Find out more on present value at brainly.com/question/17199492.

7 0
2 years ago
Which of the following best describes horizontal analysis? comparing financial statement amounts from year to year for the same
iren [92.7K]

Answer:

Comparing financial statement amounts from year to year for the same company

Explanation:

When you carry out a horizontal analysis of the financial statements of a corporation you compare how the different accounts have changed over a period of time.

For example, you can perform a horizontal analysis to determine how total costs affect net profits in the income statement. You take the 2017, 2018 and 2019 income statements and compare how total costs have evolved during that period or time, and what percentage do they represent of total revenue.

5 0
3 years ago
PLEASE HELP ME!
Lelu [443]
I think the best answer would be D. Understand her costumer value<span />
3 0
3 years ago
Read 2 more answers
A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price
user100 [1]

Answer: 4.10%

Explanation:

Solve for the current rate being used using the RATE function on Excel.

Number of periods = 15

Payment = 1,000 * 5% = 50

Present value = Current market price - floatation costs = 900 - 25 = 875

Future value = 1,000 face value

The result will be:

= 6.31%

If tax is 35%, after-tax cost is:

= 6.31% * (1 - 35%)

= 4.10%

8 0
2 years ago
a contraction period is characterized by the following attributes: businesses that are operating lower productive capacity, unem
Goryan [66]

Economic cycle is defined as the fluctuations of the economy between the period of expansion and contraction.

There are four stages of economic cycle :

Expansion, peak, contraction, trough

Under the stage of contraction, the business flow is slow as low retail sales, prices, interest rates. The correction will takes place in this stage and economy started recovering in the next stage that is trough.

It is very important to insight the economic cycle for taking major decisions regarding investment and business.

This cycle goes in cyclic pattern.

The investors will invest more in the contraction period because rates were relatively low in this stage.

To know more about economic cycle:

brainly.com/question/1253307

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4 0
2 years ago
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