Answer:
Refer explanation and diagrams
Explanation:
1. The ranching industry exists in the perfectly competitive market where there is ease of entry and exit into and out of the market, as well as many suppliers producing homogeneous products. At an equilibrium of 70 cents per pound, suppliers will be making normal profits, selling at Q1 where the AC, MC and D=AR=MR curves meet (Refer Diagram 1).
2. When feed costs are cut by 27%, it means that the cost of production of these firms will fall. Due to this, the AC curve will shift lower to AC1. At this point, the firms in the ranching industry would be making supernormal profits in the short-run of the area shaded in the diagram (Refer Diagram 2).
3. In the long run, seeing these super normal profits, new firms would be encouraged to enter into the market. The ease of entry nature of perfect competition will result in the supply curve shifting from S to S1. Hence, industry equilibrium quantity moves from Q1 to Q2. This causes a fall in price from 70 cents to Pe. Thus, in the long-run, firms will go back to producing at normal profits once again. (Refer Diagram 3).
Answer:
(a) Assumption
(b) Cause and Effect
(c) Cause and effect
(d) Assumption
Explanation:
(a) People behave rationally: Assumption
Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.
(b) Cause and Effect
If a price of goods falls that is a cause and the effect is that people will consume more of the good.
(c) Cause and effect
As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.
(d) Assumption
The maximization of profit is based on the assumption of theory of production and costs.
Answer:
Option D
Explanation:
When providing an online service, a company firstly targets to reach the maximum audience. With the increase in reach of audience the chances and feasibility of sales also increases.
But, still there are many customers who desire to have a free trial of service, in order to ensure themselves about the quality and detailed description of service.
In case company agrees to provide free trial, those customers are also satisfied and tend to avail the online service.
Thus, although the sales is directly proportional to the number of visitors, but it would definitely increase by providing the free trial of online service, as ensures more satisfaction in customers.
Final Answer
Option D
Answer:
marginal investor
equal
less
infinite
Explanation:
the value of a stock depends on the sum of the value of the dividend yield and capital gains yield
dividend yield = dividend / price of the stock
capital gains yield is a change in the value of the stock as a result of appreciation in the value of the stock.
The intrinsic value of a stock can be calculated using various dividend models. some of them include :
- The Gordon constant growth dividend model
- The two stage dividend growth model
- The H-model
- The three stage dividend growth model
The market is in equilibrium when price equal intrinsic value
a stock is undervalued when the price of the stock is less than its intrinsic value
A stock is overvalued when the price of the stock is greater than its intrinsic value.
An investor would want to purchase a stock that is undervalued so that they can take advantage of increase in the value of the stock
Th dividend used to calculate the intrinsic value is infinite. This is because dividends are paid infinitely as long as the investor holds the stock and the company exists
Answer:
Testing should be conducted on each piece of equipment every three months, as well as before first use or return to service after repair. In order to ensure a grounding wire is electrically continuous throughout the extension cord or power tool, a continuity test must be conducted.
Explanation: