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4 years ago

If there is an increase in market demand in a perfectly competitive market, then in the short run

Business

1 answer:

katovenus [111]4 years ago

7 0

Answer:

The correct answer is option d.

Explanation:

An increase in the market demand will cause the market demand curve to move to the right. This rightward shift in the demand curve will lead to an increase in the market price.

This increase in market price will cause the individual demand curves to move upwards. As the price increases, the profits earned by the firms will increase as well.

Profit to a firm is the difference between its total revenue and total cost, as the price increases, revenue will increase and cost will remain the same. This will cause profits to increase.

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Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5

stiks02 [169]

Answer:

5.62%

13.75%

Explanation:

According to the DDM method,

the value of a stock = [dividend x ( 1 + growth rate)] / [cost of equity - growth rate]

67 = 0.4(1.05) / r - 0.05

multiply both sides of the equation by r -0.05

67(r - 0.05) = 0.42

divide both sides of the equation by 67

r - 0.05 = 0.006269

r = 0.0563

= 5.63%

b. the cost of equity using the capm method =

risk free rate of return + beta x ( expected return - risk free return)

5% + 1.25 x (12 - 5) = 13.75%

3 0

3 years ago

Empirical studies of returns earned by mutual funds suggest they consistently outperform the market.True or False?

VMariaS [17]

Answer:

False

Explanation:

Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually do not beat the market in the next time period.

7 0

3 years ago

Shelley compared the number of oak trees to the number of maple trees as part of a study about hardwood trees and a woodlot she

Masja [62]

There were 72 (108 - 36) more maple trees in the woodlot before the bug problem. There were 108 maple trees in the woodlot before the bug problem. There are 36 maple trees in the woodlot after the bug problem.

The following information is given in the question:

Ratio of maple trees to oak trees before bug problem = 9:5

Ratio of maple trees to oak trees after replanting = 3:11

Total number of oak trees after replanting =132

Total number of trees in the woodlot is the same before and after the bug problem.

Let the number of maple trees after replanting be 'x'

From the data above, we can find the number of maple trees after replanting as follows:

$\frac{3}{11} = \frac{x}{132}$

$\frac{(3*132)}{11} = {x}$

$x = 36$

So, number of maple trees after replanting in the woodlot are 36.

$Total number of trees in the woodlot = No. of maple trees + No. of oak trees.$

$Total number of trees in the woodlot = 168 (132 + 36)$

Let number of maple trees before bug problem be 'z'.

We can find the number of maple trees before bug problem as follows:

$\frac{9}{(9+5)} = \frac{z}{168}$

$\frac{9*168}{14} = z$

$z = 108$

6 0

3 years ago

Required information

allsm [11]

Answer and Explanation:

The Journal entries are shown below:-

a. Accounts receivable Dr, $189,000

To service revenue $189,000

(Being service provided on the account is recorded)

Here we debited the accounts receivable as it increased the assets and we credited the service revenue as it increased the revenue

b. Cash Dr, $184,000

To Accounts receivable $184,000

(Being collection on accounts is recorded)

Here we debited the cash as it increased the assets and we credited accounts receivable as it decreased the assets

c. Bad debt expenses Dr, $6,180

To Allowance for uncollectible accounts $6,180

(Being estimated uncollectible accounts is recorded)

Here we debited the bad debt expenses as it increased the expense and we credited the allowance for uncollectible accounts as it decreased the asset

Working note

Uncollectible accounts = (Total account - Cash collected) × 20%

= ($25,900 + $189,000) - $184,000 × 20%

= $30,900 × 20%

= $6,180

d. Allowance for uncollectible accounts Dr, $7,900

To Accounts receivable $7,900

(Being write off of actual bad debt is recorded)

Here we debited the allowance for uncollectible accounts as it increase the allowance and we credited the accounts receivable as it decreased the asset

8 0

4 years ago

If a production function is getting flatter as number of workers hired increases from 12 to 13; then the total cost curve would

Paha777 [63]

Answer:

True

Explanation:

The production function is getting flatter since the marginal productivity of the 13th worker is lower than the marginal productivity of the 12th worker, e.g. the 12th worker produced 10 units per hour, the 13th worker only produces 9 units per hour.

The total cost curve will get steeper because the total cost of producing more goods will increase due to the lower marginal productivity of the 13th worker, e.g. since both workers earn $10 per hour, the units produced by the 12th worker will have a direct labor cost of $1 per unit, while the units produced by the 13th worker will have a direct labor cost of $1.11 per unit.

3 0

3 years ago