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Rama09 [41]
3 years ago
13

The contestable market model of oligopoly bases pricing and output decisions on:

Business
1 answer:
taurus [48]3 years ago
8 0
<span>The contestable market model of oligopoly bases pricing and output decisions on the threat of new entrants into the market. The oligopoly market form is where the market or industry is run by a small amount of sellers that can influence the price and other market factors.</span>
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What are the functions of business.
expeople1 [14]
The most likely answer is option D
4 0
2 years ago
The common stock of sweet treats is valued at $10.80 a share. the company increases its dividend by 8 percent annually and expec
N76 [4]
Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends. 

<span>Value of stock (P0) = D1 / (k - g)

</span>where
D1<span> = </span><span>expected annual </span>dividend<span> per share in the following year </span>
<span>k = the investor's discount rate or required </span>rate of return
g = the expected dividend growth rate 

<u>From the problem:</u>
The value of stock is $10.80
D1 is $0.40
g is 0.08

k is unknown

Solution:
Rearranging the equation for Gordon Growth Model to solve for k:

k = (D1/P0) + g

Substituting the variables with the given values, 

k = (0.40/10.80) + 0.08
k = 0.1170

In percent form, this is
0.1170 * 100% = 11.70%.

Thus, the total rate of return on the stock is 11.70%.
3 0
3 years ago
Written communications fall into two categories: paper-based and electronic. Which of the following are paper-based messages? Ch
Harman [31]

Answer:

The correct answer is letter "B" and "C": Business letters; Interoffice memos.

Explanation:

Paper-based communications are means of transmitting information presented on paper. It is implemented in formal cases where there must be written support of a proposal or notification about the course of actions that will be taken in front of a claim case or problem, for instance. <em>Business letters </em>and<em> interoffice memos </em>fall under this category.

Electronic communication can be used at the corporate level as well but it has a certain degree of informality. <em>Instant messages</em> or <em>e-mails </em>are used to transmit different kinds of information within a firm.

5 0
3 years ago
An increase in the costs of resources or inputs of production would shift the ________.
nadya68 [22]

Answer:

C. short-run aggregate supply curve leftward

Explanation:

When the cost of production or inputs of production increase the short run supply curve shifts left because the producers are now willing to sell less at the same price because it is more expensive for them to produce, so at every price the production decreases because of which the supply curve shifts left. The long run supply curve isn't affected by an increase in costs of resources because it is the potential of the economy and an increase in costs of does not change the potential of the economy.

5 0
3 years ago
For example, an increase in the money supply, areal variable, will cause the price level, anominal variable, to increase but wil
lord [1]

Answer:

The answer would be neutrality of money theory

Explanation:

The neutrality of money theory claims that changes in the money supply affect the prices of goods, services, and wages but not overall economic productivity. Many of today's economists believe the theory is still applicable, at least over the long run.

3 0
3 years ago
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