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3 years ago

Which statement is the best description of a price‑taker as it pertains to perfect competition?

Business

1 answer:

Nesterboy [21]3 years ago

8 0

Answer:

The correct answer is letter "A": Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton.

Explanation:

Perfect Competition is a market where competition is at the highest degree possible. Perfect competitive markets have the following characteristics:

All companies sell the same goods or services.
All companies are price takers.
All firms have relatively small market shares.
Buyers have full product and price information.
The industry is characterized by low or no barriers to entry and exit of the industry.

Thus, in Mary Beth's case, she cannot ask for a different price than the one of the market because in a perfectly competitive market it is controlled by supply and demand. Companies cannot set the price.

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If the internal rate of return is used as the discount rate in the net present value calcula-tion, the net present value will be

bezimeni [28]

If the internal rate of return is used as the discount rate in the net present value calculations, the net present value will be equal to zero. The internal rate of return (IRR) is a financial analysis metric used to estimate the profitability of potential investments.

The IRR calculations use the same formula as NPV calculations. Keep in mind that the IRR is not the project's actual the dollar value. The annual return is what brings the NPV to zero. The IRR is calculated in the same way as net present value (NPV), except that it sets NPV to zero.

To learn more about value, click here.

brainly.com/question/1578158

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4 0

2 years ago

Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic

kaheart [24]

Answer:

Unsystematic risk

Explanation:

The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.

According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.

Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks

7 0

3 years ago

Ben invested $20,000 into a money market account and took out $5,000 at the end of year 5. He found out at the end of 10 years t

Crazy boy [7]

Answer:

r = 11.5%

Explanation:

Given data:

invested amount $20,000

withrawl amount after 5 year is $5000

Amount at the end of 10th yr is $50,000

present value is given as

$PV =\frac{ A}{(1 + r)^n}$

where

A - amount after given n year

$PV = \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}$

$20,000 = \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}$

Let $(1 + r)^5 = t$

squaring on both side

$(1 + r)^{10} = t^2$

$20,000 = \frac{5000}{t} + \frac{50000}{t^2}$

$20 = \frac{5}{t} + \frac{50}{t^2}$

$20 t^2 - 5t - 50 = 0$

solving for t we get

t = 1.711

so, $r = 1.711^{1/5} -1 = 0.115 = 11.5\%$

5 0

3 years ago

All of the following create problems with accurate product or job costing except: A. bar coding is used to record materials use

lukranit [14]

Answer:

A. bar coding is used to record materials used on the job.

Explanation:

Bar coding is used to record materials used on the job.

Bar code is a small image of lines appended on goods for easy identification, thereby increasing efficiency in businesses.

5 0

3 years ago

WHEN MUST A TAXPAYER WHO HAS RECIEVED STOCK APPRECIATION RIGHTS FROM AN EMPLOYER INCLUDE THE VALUE OF THE RIGHTS IN INCOME

irina1246 [14]

Answer:

"There are no federal income tax consequences when you are granted stock appreciation rights. However, at exercise you must recognize compensation income on the fair market value of the amount received at vesting. An employer is generally obligated to withhold taxes. Depending on the rules of your plan, the employer may satisfy that withholding obligation by withholding cash or shares. The remaining net proceeds will be deposited into a brokerage account. If you receive net shares and sell them at a later point, the appreciation in value of the shares from the time of exercise to the time of sale will be treated as a capital gain or loss. Whether it is a long-term or short-term gain or loss will depend on how long the shares are held."

Explanation:

I don't know if this helps, but here is a quate i found.

https://www.fidelity.com/webcontent/ap002390-mlo-content/18.09/help/learn_stock_appreciation_rights.shtml

6 0

2 years ago