Answer:
False
Explanation:
According to Michael Porter in an industry the larger the number of competitors the larger the number of equivalent products, and the less the power of the company to increase price of its products. This is because there are wide range of products that can substitute theirs.
On the other hand when there is weak competition, the number of subsititute products will be low and the company can increase price and make profit.
So the argument that the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater is false.
A monopolist's marginal cost curve shifts down, but the firm's demand curve remains the same. as a result of the fall in marginal cost, the monopolist will raise its price and decrease its output.
<h3>What is marginal cost?</h3>
The difference between the total cost and the change in energy output is known as the marginal cost (MC) curve. The MC curve and the firm's supply curve are the same in totally competitive marketplaces.
Due to how the "law of changing proportions" operates in the near term, the marginal cost curve has a U-shaped shape. The law states that the MC curve initially slopes downward until it reaches its minimum point, at which time it begins to slope upward. As a result, when represented visually, the curve takes on the shape of a U.
Because a corporation seeking to maximize profits will only create until the marginal cost (MC) equals marginal income, marginal cost is a key concept in economic theory (MR). Beyond that, the cost of manufacturing a new item will be more than the profit made.
Although a monopolist's demand curve changes, its marginal cost curve stays the same. The monopolist will increase its price and cut back on production as a result of the decline in marginal cost.
To learn more about marginal cost refer to:
brainly.com/question/15570401
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Missing Question Data:
As the Question is missing relevant data, I have searched for it online and found a question similar. The data is attached in a picture file. It might be a little different from your actual question but same approach can be used to solve the question.
Answer with Explanation:
For simplicity, we denote the compensations with variable <em>x </em>and the stock return with variable <em>y.</em> Let us first find the mean and standard deviation for both compensation (x) and return (y).
Mean of Compensation (<em>x) </em> will be,
Mean of Stock Return (y) will be,
Standard Deviation for Compensation (x) is given by,
Standard Deviation for Compensation (x) is given by,
To find the predicted stock return, we have to use the equation for of line of regression,
where,
Equation (1) will become,
.
Answer:
Explanation:
Basic and diluted Eps
Basic EPS = profit after tax-preference share dividend / w. Avg No.of shares
Basic Eps
Income 270000
Tax 20% 54000
Pat 216000
Dividend 5*5000 -25000
191000
W.Avg No. shares 50000
Basic EPS 191/50 3.82
Diluted Eps
PAT 191000
Add back Dividend of assumed conversion of pref. shares 25000
Total Income 216000
Total No of share 60000*
Diluted Eps 216000/60000 3.6
*Common Stock = 50000
Add Assumed Conversion of Pref. shares = 5000*2 = 10000
Total Shares = 60000
Answer:
take notes, research that information
