Answer:
----Either similar or identical products --------Difficult entry
----Mutual interdependence
Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc
Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
The number of units= 1,250
It can be sold now for $67,500 to another manufacturer.
Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $375 each.
<u>The $50,000 is a sunk cost, meaning that it has already happened. It shouldn't be taken into account.</u>
Sell as it is:
Income= $67,500
Continue production:
Income= 1,250*(375 - 250)= $156,250
It is more profitable to continue processing.
Answer:
C
Explanation:
Measures concentration by adding market shares squared
Answer:
The answer is below
Explanation:
The Federal Reserve System Board of Governors is one of the five branches of the Federal Reserve System. Their roles involve carrying out the analysis of economic data, executing supervision of Reserve Banks, establishing and overseeing financial regulations.
The board comprises seven members with 14-year terms. They also partake in the Federal Open Market Committee and as well liaising with leaders in other parts of the government.
Answer:
9.6845%
Explanation:
Market risk premium = Market return - Risk free rate
7.3 = 11.2 - Risk free rate
Risk free rate = 3.9%
(1) Use CAPM:
Cost of equity = Risk free rate + Beta × Market risk premium
= 3.9% + 1.06(7.3)
= 11.638%
(2) Use DDM
:
Stock price = [Latest dividend × (1 + dividend growth rate)] ÷ (Cost of equity-dividend growth rate)
$17 = [0.92 (1 + 0.022)] ÷ (Cost of equity - 0.022)
Cost of equity = 7.731%
Cost of equity = average value from using DDM and CAPM
Cost of equity = 0.5 (7.731 + 11.638)
= 9.6845%
