In monopolistic competition, what effect do price variations generally have on the market as a whole

J.c coats inc. carefully develops standards for its coat making operation. its specifications call for 2 square yards of wool pe

AlekseyPX

Standard:

Wool required = 2 yard^2 per coat
Cost = $44/ yard^2

Therefore,
Total standard cost per coat = wool per coat * cost per yard squared = 2*44 = $ 88 per coat.

The correct answer is C.

7 0

4 years ago

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Find the present values of the following cash flow streams. The appropriate interest rate is 10%. (Hint: It is fairly easy to wo

andreyandreev [35.5K]

Answer:

a. The present value of Cash flow stream A at 10% interest rate is $1,181.50; while the present value of Cash flow streams B at 10% interest rate is $1,239.13.

b. Present value of Cash flow streams A and B at 0% interest rate are both equal to $1,600.

Explanation:

a. Calculations of the present values of Cash Flow Stream A and B at 10% interest rate

The present value (PV) for a particular year can be calculated using the following formula:

PV = FV / (1 + r)^n

Where:

PV = present value of a particular year

FV = Future value or cash stream of a particular year

r = interest rate = 10%

n = The particular year in focus

The present value of cash flow streams at a particular interest rate is the sum of the present values of Cash Stream for all years, and this can be calculated as follows:

Present value of Cash flow stream A at 10% interest rate = (100 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (300 / (1 + 10%)^5) = $1,181.50

Present value of Cash flow streams B at 10% interest rate = (300 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (100 / (1 + 10%)^5) = $1,239.13

b. Calculations of the present values of Cash Flow Stream A and B at 0% interest rate

The present value of cash flow streams at a 0% is simply the sum of Cash Flow Stream for all years, and this can be calculated as follows:

Present value of Cash flow stream A at 0% interest rate = $100 + $400 + $400 + $400 + $300 = $1,600

Present value of Cash flow streams B at 0% interest rate = $300 + $400 + $400 + $400 + $100 = $1,600

5 0

3 years ago

16. If a business chooses an alternative strategy

Sergio [31]

A. Avoiding Risk

Explanation:

When a company is trying to avoid risks it finds alternative strategies to get a job done when they feel it is viable than taking a risk. <u>This is a defensive option often chosen by firms when they do not see the possible reward being worth the risk </u>in a particular strategy.

When this form of strategies are used in management it means that the <u>company would rather stay stable than go for higher while risking their basic business.</u>

7 0

3 years ago

Why do car manufacturers offer deal incentives?

Vinvika [58]

1. Dealer incentive is defined as the factory-to-dealer cost which is being reduced to buy the vehicle from the company.

2. The reason they offer these is to help a slow selling model or brand of vehicle basically saying they do this to try to boost the hype for the vehicle and hopefully the incentives will make the model sell faster.

3. The main motive behind dealer incentives is to give the dealers a low price for stocking the companies products.

4. The main reason car manufacturers offer incentives is to help boost sales of slow-moving models.
In order to disguise the fact the car isn't selling well, some manufactures prefer giving incentives via "hidden" avenues, such as dealer incentives and low APR financing. Sometimes car incentives are provided merely as a competitive tool and not necessarily to help sell slow-moving models.
A final reason car incentives are used is to clear out year-end vehicles to make room for next year's models.

6 0

3 years ago

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Impact of Treasury Financing on Bond Prices The Treasury periodically issues new bonds to finance the deficit. Review recent iss

brilliants [131]

Answer:

When the treasury bonds are restricted to purchase it creates pressure on other securities and interest rates tend to move upwards.

Explanation:

When interest rates more upwards then cost of borrowing is increased. This increase in cost of borrowing creates pressure on the profits of private sector. The public sector benefits from this increase in interest rates. When government is in trouble and financing is limited then these measures are used to run the economy.

3 0

3 years ago