Answer:
if n=1 (monopoly) we have 
if n goes to infinity (approaching competitive level), we get the competition quantity that would be 
Explanation:
In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem
from the FPC we have that
since all firms are homogeneous this means that 
then 
the industry output is then
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be
Answer:
Part A)
Inflation Rate = 12% - 4%
Inflation rate = 8%
Part B)
If the genuine income was higher, the expansion level would diminish subject to the buyer's spending limitations. As such, they will make a similar measure of cash yet their buying power per dollar will increase.
Part C)
in the current scenario, increment in cash would cause the expansion rate to increment. On the off chance that we consider the past and occasions, for example, hyperinflation, take a gander at what the reason was. Governments were printing cash to pay obligations, which was diminishing the estimation of their money. Right now, would get paid and race to the store to go through their cash in light of the fact that their dollars today may just be worth 50 pennies tomorrow or at times, the following hour. Thus, our answer is if the speed of cash continues developing, expansion will continue developing also. These two factors are star repetitive with one another significance they move together.
No, Geico offers free towing for customers who have the company’s roadside assistance coverage
If a government chooses to do this, the reduction in pollution will TAKE PLACE IN THE FIRMS WHERE ITS LEAST EXPENSIVE TO DO SO. If a government desire to establish a marketable permit program, it must first define the pollutants that will be allowed and their overall amounts that will be permissible. Companies that will mostly participate in the program will be those that do not produce much pollutants.
Answer:
Option (B) is correct.
Explanation:
Cost of Equity (Ke) = Rf + Beta ( Rp)
where,
Rf = risk free rate
Rp = Market risk premium
Hence,
Beta systematic risk
:
= 7% + 1.7 (6%)
= 7% + 10.2%
= 17.2%
Post Tax cost of debt:
= Kd ( 1 - T)
where,
Kd = cost of debt
T = tax rate
= 20% * (1-0.4)
= 12%
WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]
where,
We = weight of equity
Wd = weight of debt
= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]
= 10.32% + 4.80%
= 15.12%
