Answer:
a) Oligopoly
Explanation:
The oligopoly is a market structure which characterized by the presence of a few large companies producing homogeneous or differentiated products
In this market, there are few sellers plus there is also a barriers for entering the new firms in the market. Also, the prices are normally fixed in this market because due to the competitors as they are fear of price war
So in the given question, it indicated the oligopoly scenario
Answer: Buy more of both rice and beans
Explanation: Marginal benefit refers to the additional benefit that a customer get by consuming one additional unit of a commodity.
In the given case, the marginal benefit for the customer is positive for both of the goods. Also if he chooses to but one more unit of anything in place of other than he will not able to use his budget properly.
Thus, from the above we can conclude that the correct option is C.
Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
The Answer is D. It would not affect gross income. Gross income is the total amount of income you gain before expenses are taken away.
