Answer:
The total cash flow of the firm
Explanation:
The M & M theory is a theory developed by Modgliani Miller about the capital structure of a company and its overall value .
The theory was first enacted under the assumption of a perfectly efficient market and when the effects of taxes and bankruptcy costs were not considered, However , he later developed another theory where tax and other costs are now considered to address the real world condition.
In summary , the basic lesson is that the value of a firm is dependent on the total cash floe of the firm.
Answer: Produce less.
Explanation:
Given that,
Price = $65
Marginal revenue = $35
Average total cost = $35
Marginal cost = $50
From the information given, it was observed that marginal revenue is not equal to marginal cost. The profit maximizing condition for a monopolist is at a point where marginal revenue is equal to the marginal cost.
But here marginal cost is greater than the marginal revenue. So, the monopoly firm should produce less output in order to reduce the marginal cost.
Answer:
lower , demand
Explanation:
Price Elasticity of Demand [P.Ed] is the responsive change in demand due to change in price.
P.Ed is affected by many factors : Substitute availability, Consumer Income, Nature of product, Product use(s), role of habits, price adjustment time/ urgency of demand.
The P.Ed factor mentioned in the question is price adjustment time/ urgency of demand'
- If there is <u>short </u>time period for consumers to adjust to a price : the demand will respond less to price change. So, P.Ed is <u>lower</u>. Demand is <u>less elastic</u> in this case.
- If there is more time period for consumers to adjust to a price : the demand will respond more to price change. So, P.Ed is higher. Demand is more elastic in this case.
Demand is more elastic in long time period than in short time period
Answer:
The correct option is C
Explanation:
Many of the taxes and rules that have limited trade among member countries of the European Union were eliminated. A unification will simply imply that rules on limited trade among member countries are lifted and all taxes are either reduced to a barest minimum or eliminated as any unified trade agreement between countries.
