Answer:
Explanation:
a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4
price P=15-Q=10-4=6
profit=6*3-TC=18-(3+4+0.5*4^2)=3
b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.
c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.
d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.
Answer:
the present value is $467,335.2613
Explanation:
The computation of the value worth today is shown below:
= Amount in two years ÷ (1 + rate of interest)^number of years
= $590,000 ÷ (1 + 12% ÷ 2)^2×2
= $590,000 ÷ 1.06^4
= $590,000 ÷ 1.26247696
= $467,335.2613
Hence, the present value is $467,335.2613
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.
Explanation:
If Yields in the market fell, Bonds would still be making the same coupon payments they always have been regardless of this fall. This will lead investors to buy more bonds which will have the effect of raising bond prices.
This therefore shows that Bond prices and Yields are inversely related. If one rises, the other falls. If the price of the security (bond) increases from $1,500 to $1,600 then it follows that the yield to maturity will decrease.
Answer:
The perpetuity is worth $1486.43 more than the ordinary annuity
Explanation:
A perpetuity that with an annual cash inflow or cash outflow payable for a foreseeable future - for an infinite number of period
The present value of a perpetual annuity is calculated as
PV= A/r
PV = 1000/0.1
PV =&10,000
On the other hand, an annuity with annual cash inflows or cash outflows for certain number of years is called an ordinary annuity.
The present value of an ordinary annuity is determined as follows:
PV = (1 - (1+r)^n)/r × A
= (1-(1+0.1)^(-20))/0.1 × 1000
= 8.5135 × 1000
= 8513.56
Difference in PV = 10,000 - 8513.56
= $1486.43
The perpetuity is worth $ 1,486.43 more than the ordinary annuity
Answer:
$40,360
Explanation:
Data provided
Inventory price = $38,100
Transportation cost = $1,500
Shipment insurance = $210
Cleaning and refurbishing = $550
According to the situation the computation of total cost of inventory is shown below:-
Total cost of inventory = Inventory price + Transportation cost + Shipment insurance + Cleaning and refurbishing
= $38,100 + $1,500 + $210 + $550
= $40,360
Therefore for computing the total cost of inventory we simply applied the above formula.
