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3 years ago

Are perfectly competitive markets allocatively allocatively efficient in the long run?

Business

1 answer:

antiseptic1488 [7]3 years ago

7 0

Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.

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Other things remaining equal, the law of demand says that higher prices will lead to a A. smaller quantity demanded and lower p

Yuri [45]

Answer:

The answer is A.

Explanation:

Other things remaining equal, the law of demand says that the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded.

Suppose a good is being sold at $5 and 20 quantities are being demanded, if the price increases to $6, lesser of that goods should be demanded

7 0

4 years ago

Yehle Inc. regularly uses material Y51B and currently has in stock 457 liters of the material for which it paid $2,619 several w

Sedaia [141]

Answer:

Option A is the correct answer,$5810

Explanation:

The relevant of the Y51B is the cost of replacement,which is the open market price as it is actively being used by Yehle Inc.

Besides, if the quantity currently in inventory is used it has to be replaced at open market price.

Disposal value would have been used if the material in question is not being used

The relevant of 700 liters is given below:

$5.81*1000=$5,810

1000 liters has to be bought not 700 liters as the least quantity available for sale is 1000 liters.

Above,it would be wrong to choose option D as 700 liters is not available

5 0

3 years ago

Revive Co. has outstanding 20-year noncallable bonds with a face value of $1000. These bonds have a current market price of $138

pickupchik [31]

Answer:

5.75%

Explanation:

Firstly, we need to find the yield-to-maturity (YTM) of current outstanding bond as below:

Bond market price = Coupon/(1 + YTM) + Coupon/(1 + YTM)^2 + Coupon/(1 + YTM)^3 +...+ Coupon/(1 + YTM)^20 + Face value/(1 + YTM)^20, or:

1,382.73 = 130/(1 + YTM) + 130/(1 + YTM)^2 + 130/(1 + YTM)^3 +...+ 130/(1 + YTM)^20 + 1,000/(1 + YTM)^20

Solve the equation, we get YTM = 8.85%.

So, if he company wants to issue new debt, its after-tax cost of debt is 8.85% x (1 - 35%) = 5.75%

7 0

4 years ago

Broad, Inc. had a beginning inventory of $50,000 and an ending inventory of $80,000. Its Cost of Goods Sold for the year was $97

nevsk [136]

Answer:B. $1,000,000

Explanation :

Given that

beginning inventory = $50,000

Cost of Goods Sold =$970,000.

ending inventory = $80,000.

Using the formula below to find the amount of purchases , we have that

Cost of Goods Sold = Beginning Inventory + Purchases During the Period – Ending Inventory

$970,000 =$50,000+Purchases During the Period -$80,000

Purchases During the Period =$970,000 -$50,000 +$80,000

Amount of Purchases During the Period for Broad, Inc. = $ 1,000,000

8 0

3 years ago

Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quant

Tems11 [23]

Answer:

Demand Curve is same as Average Revenue (AR) curve.

Total Revenue, Marginal Revenue, Average Revenue have been solved below

Explanation:

The demand curve that Vesoro faces is identical to 'Average Revenue' <u>curve</u>. As, AR curve represents average price (P) buyers are willing to pay for a quantity of a commodity.

Average Revenue (AR) is total revenue (TR) per unit quantity. AR = TR/ Q. Total Revenue is the total revenue for all quantities, TR = P x Q

So, Average Revenue = (P x Q) / Q = P ie price. This states that average price willingness to pay is same as AR, demand curve is AR curve.

Assuming perfect competition constant price = $5

Q P TR= PxQ AR= TR /Q MR (marginal revenue = TRn -TRn-1)

0 5 0 0 _

1 5 5 5 5

2 5 10 5 5

3 5 15 5 5

7 0

3 years ago

Are perfectly competitive markets allocatively allocatively efficient in the long​ run?

Are perfectly competitive markets allocatively allocatively efficient in the long run?