Answer:
Decline the offer
Explanation:
I would most likely decline the offer. The fact that he is selling for higher but is willing to go 10% proves the meat isn’t worth the more money. I would stick with my current supplier. Unless there is a significant difference between the meats, there is no reason for him to be selling it any higher than his competitors and the fact that he is offering a discount proves that.
Answer:
Explanation:
Coupon rate = 2%, Par value = $1000
Treasury bond pays coupon semi annually
Coupon payment = (Coupon rate * par value) / 2 = (2% x 1000) / 2 = 20 / 2 = $10
Cash flow in six months = Coupon payment = $10
Cash flow in 1 year = Coupon + par value = 10 + 1000 = 1010
Discount rate for cash flow in 6 months = six-month Treasury spot rate i= 1.6% APR
Semi annual discount rate for cash flow in 6 months = 1.6% / 2 = 0.8%
Discount rate for cash flow in 1 year = 1 year Treasury spot rate i= 2% APR
Semi annual discount rate for cash flow in 1 year = 2% / 2 = 1%
Price of Treasury bond = present value of cash flow in six months discounted at semi annual discount rate + Present value of cash flow in 1 year discounted at semi annual discount rate
Price of Treasury bond = 10 / (1+0.80%) + 1010 / (1+1%)^2 = 10/1.0080 + 1010 / (1.01)^2 = 9.9206 + 990.0990 = 1000.02
Answer:
additional firms will be attracted into the market until price falls to the level of per-unit production cost
Explanation:
A price taker is a firm or a seller who is not able to set the market price for its goods and services. Instead, the price taker accepts the price set by market forces - forces of demand and supply.
An example of a price taking firm is a firm in a perfect competition
If a firm is able to charge prices above production costs, the firm is earning an economic profit
If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Answer:
Is the percent of every sales dollar that is still when deducting total unit variable price.
This ratio indicates the proportion of every sales dollar that's accessible to hide a company's fastened expenses and profit. The ratio is determined by isolating the commitment edge (deals less all factor costs) by deals.
