Answer:
11.21%
Explanation:
the opportunity cost of capital can be determined by calculating the weighted average cost of capital
WACC = [weight of equity x cost of equity[ + [weight of debt x cost of debt x (1 - tax rate)] + [weight of preferred stock x cost of preferred stock]
0.3 x 10.76 + (0.5 x 13.91) + (0.2 x 0.65 x 7,87)
3.228 + 6.955 + 1.231
11.21%
Yes it is possible to posses elements of more than 1.
Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
Answer:
Option (a) and (b) are considered or correct.
Explanation:
Under the following two conditions, a firm in a perfectly competitive market produces at a point where the marginal revenue is equal to the marginal cost:
(i) Minimum AVC < Price < minimum ATC : Yes
In this case, a firm may suffer a loss but it will be able to cover its minimum average variable cost. Hence, this firm continue operating in this market and if he shut down its operation then he may suffer a larger loss. Therefore, it chooses to continue operating under this market conditions.
(ii) Price > minimum ATC : Yes
In this case, the price received by the seller is greater than the minimum average total cost. Therefore, the firm is able to cover all of its cost of production and earning an economic profit. Hence, it obviously chooses to continue its operation.
The third option is not considered here because in this case, the firm won't be able to cover its variable cost.
