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3 years ago

A perfectly competitive industry is characterized by :

Business

1 answer:

Ivenika [448]3 years ago

5 0

Answer: Option b

Explanation: Perfect competition refers to a market structure in which there are large number of small sellers selling identical products in the market. Due to large number of participants no individual firm is able to affect prices on the basis of their operations.

It is not possible earn abnormal profits in such a market structure.

Hence from the above we can conclude that the correct option is B.

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On October 25, 1989, Mina Loy sent a letter to Carl Van Vechten which said, "I hereby offer to hire you to paint my house for $4

Sindrei [870]

<u>Answer: </u>Option B

<u>Explanation:</u>

There is no acceptance and no contract in this case. Mina Loy's written offer letter states clearly that the acceptance has to be made through first class mail. The terms of the offer were not fulfilled by Carl Van Vechten as he did not perform the acceptance as per the condition mentioned in the offer.

As there is no valid contract the parties to the contract that is Mina Loy and Carl Vechten are not obliged to perform their obligations as promised.

3 0

3 years ago

currently, a firm has an EPS of $2.08 and a benchmark PE of 12.7. Earning are expected to grow by 3.8 percent annually. What is

Verizon [17]

Answer:

$26.42

Explanation:

According to the given situation, the computation of the estimated current stock price is shown below:-

Estimated current stock price = Earning per share × PE ratio

= $2.08 × 12.7

= $26.42

Therefore for computing the estimated current stock price we simply applied the above formula and ignore all other value as they are not relevant.

6 0

3 years ago

The Tool Box needs to purchase a new machine costing $1.46 million. Management is estimating the machine will generate cash infl

dimulka [17.4K]

Answer:

yes, because the IRR is 12.74 percent

Explanation:

given data

present value = $1.46 million

first year cash inflows c1 = $223,000

next three years cash inflows c2,c3,c4 = $600,000

rate of return minimum = 12 %

to find out

firm purchase this particular machine based on its IRR

solution

we consider here IRR is = r

we apply here present value formula that is express as

present value = $\frac{c1}{(1+r)} +\frac{c2}{(1+r)^2} +\frac{c3}{(1+r)^3} +\frac{c4}{(1+r)^4}$ .......1

put here value

$1.46 million = $\frac{223000}{(1+r)} +\frac{600000}{(1+r)^2} +\frac{600000}{(1+r)^3} +\frac{600000}{(1+r)^4}$

solve it we get

r = 12.74%

so here IRR = 12.74% is higher than the rate of return minimum = 12%

so it will create a positive net present value of cash inflows

and project will accepted and firm purchase the machine

so we can say yes, because the IRR is 12.74 percent

7 0

4 years ago

Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac

PilotLPTM [1.2K]

Answer:

0.33

Explanation:

Delta = (Cu – Cd)/(Su – Sd)Cu

= 62.50 – 55 = 7.50

Cd = 0

Delta = (7.50 – 0)/(62.50 – 40)

= 0.33

5 0

3 years ago

There are 300 purely competitive farms in the local dairy market. of the 300 dairy farms, 298 have a cost structure that generat

Stells [14]

Answer:

The percentage rate of return for these 298 dairies is 6%

Explanation:

The percentage rate of return is calculated by dividing the profits by total investment, so the given information in the question is,

profits = $18

investment = $300

percentage rate of return = 18/300 = 0.06 = 6%

4 0

3 years ago