When a product is scarce, consumers are faced with conducting their own cost-benefit analysis; a product in high demand but low supply will likely be expensive. ... This means that a consumer should only purchase the product if they see a greater benefit from having the product than the cost associated with obtaining it.
Suppose a monopolist produces output where total revenue is maximized. At that output, the price elasticity of demand for the monopolist's output is equal to one.
What is Monopoly?
A monopoly is a market structure where one producer or seller holds a significant amount of influence within a certain market. Monopolies are forbidden in free-market economies as they limit customer alternatives and discourage competition. A company that enjoys monopoly status lacks replacements for its goods and faces little internal competition. Monopolies have the power to set prices and create barriers to entry for competing companies. Monopolies frequently benefit from economies of scale, the capacity to produce large volumes at reduced unit prices.
To know more about monopoly refer:
brainly.com/question/5992626
#SPJ4
Answer:
The expected rate of return on this stock is 10.31%
Explanation:
The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,
P0 = D0 * (1+g) / (r - g)
Plugging in the values,
65 = 1.7 * (1+0.075) / (r - 0.075)
65 * (r - 0.075) = 1.8275
65r - 4.875 = 1.8275
65r = 1.8275 + 4.875
r= 6.7025 / 65
r = 10.31% or 0.1031
Answer:
keep your money hidden from family, typically the cousins, they like to steal it :')
