Answer:
Explanation:
B.)Your annual salary for doing your job.
Answer:
Consider the following calculations
Explanation:
The price per share is computed as shown below:
Present value of equity is computed as follows:
= $ 10 million / 0.13
= $76,923,076.92
Now we shall divide it by the number of shares to get the price per share
= $76,923,076.92 / 5,000,000
= $ 15.38 per share
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Answer:
Economic profit is $0
Explanation:
Economic profit is sales revenue minus both explicit and implicit costs.
Explicit costs are the costs that involve actual cash movements,whereas the implicit costs are the costs or benefits forgone,for the benefits Bob had to forgo in order to run his own business such the salaries that could he could earn if he takes up an employment rather than self-employment.
Sales revenue $90,000
less explicit costs:
Insurance ($5,000)
Material costs ($25,000)
Lease payments ($10,000)
implicit cost:
Salaries forgone ($50,000)
Economic profit $0
Answer:
Explanation:
a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4
price P=15-Q=10-4=6
profit=6*3-TC=18-(3+4+0.5*4^2)=3
b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.
c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.
d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.