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Complete Question:
Refer to Exhibit 23-9. Assume that demand increases from D1 to D2; in the new long run equilibrium, price settles at a level between P1 and P2 This means that the industry in question is a(n) __________-cost industry.
a. Decreasing
b. Increasing
c. Constant
d. Marginal
e. Low
Answer:
b. Increasing
Explanation:
An increasing cost industry is an industry where the cost of producing goods increases, due to the emergence of new industries.
As the entrance of new industries continue to increases, raw materials and supplies become very scarce, this causes the competition between the companies to increase.
An Increasing cost industry is an examples of a perfectively competitive industry. One of the major factors that can cause the emergence on an increasing cost industry is the increase in the demand of goods which results in the increase in production cost.
Examples of Increasing cost industries are industries that produce:
a. Gold
b. Copper
c. Silver
The supply of raw materials required for production by an increasing cost company is going to be available in small quantities and also very scarce therefore we can say the supply of raw materials is finite or limited.
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She will not succeed in sue the sorrority
Answer:
e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.
Explanation:
Based on this information,Adonis Corporation is issuing a coupon paying bond.
- The $286,827 that they receive is the market price/ market value of the bond.
- The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
- Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
- The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
- <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
