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Lelu [443]
3 years ago
9

The Dealey Electric Group produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companie

s produce bulbs used in the production of refrigerators, with Dealey as the leader in market share.
In this case, Dealey Electric Group would be considered:

A. a monopoly.
B. involved in perfect competition.
C. involved in monopolistic competition.
D. involved in a perfect oligopoly.
E. an oligopoly.
Business
1 answer:
WINSTONCH [101]3 years ago
4 0

Answer: Oligopoly

Explanation:

The market type being described in the question is an oligopolistic market, where Dealey electric group and three other companies are in control of bulb production.

An oligopolistic market is a market where sales is being controlled by a very few number of companies and the prices of commodities in that market are also controlled by those companies.

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Answer:

We can say the rate is close enought to 14%

Explanation:

tthe IRR will be the rate at wich the NPV is zero

The cash flow are an annuity of 4,120 for 6 years

NPV = present value of cash flow - investment

 0    =  PV of annuity - investment

 0  = PV of annuity - 16,000

PV = 16,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C    4120

time  6

rate       IRR

4120 \times \frac{1-(1+IRR)^{-6} }{IRR} = 16,000\\

We divide the PV by the annuity to get the annuity factor

16,000 / 4,120 = 3,88349

We can look into the annuity table for a factor at time = 6 close to this figure

we have

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15% factor of 3.784

We can say the rate is close enought to 14%

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