Answer:
e. all of the above
Explanation:
Just like inn games, all the features enumerated in the options apply.
Specifically, actions by players determine outcomes. Also, players employ strategies to obtain desired results.
Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".
Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.
In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.
Sorry, I’m not sure so I don’t want to mislead you
For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.
Answer:
17%
Explanation:
To calculate this, we use the weighted average cost of capital (WACC) as follows:
Total capital = 15 + 5 = 20
Weight of equity = 15/20 = 0.75, or 75%
Weight of debt = 5/20 = 0.25, or 25%
WACC = (20% × 75%) + (8% × 25%) = 17%
Therefore, the company's cost of capital is 17%.
