Answer:
The correct answer ise. do nothing and leave prices unchanged.
Explanation:
It has been observed that many oligopolistic industries exhibit an appreciable degree of price rigidity or stability. In other words, in many oligopolistic industries prices remain sticky or inflexible, that is, there is no tendency for oligopolists to change the price even if economic conditions undergo a change.
There have been many explanations of this price rigidity in the oligopoly and the most popular explanation is the so-called crooked demand curve hypothesis. The crooked demand curve hypothesis was presented independently by Paul M. Sweezy, an American economist, and by Hall and Hitch, Oxford economists.
It is to explain the price and production under oligopoly with product differentiation, that economists often use the hypothesis of the crooked demand curve. This is because when products under oligopoly differ, it is unlikely that when a company increases its price, all customers abandon it because some customers are intimately linked to it due to product differentiation.
As a result, the demand curve facing a company under differentiated oligopoly is not perfectly elastic. On the other hand, under the oligopoly without product differentiation, when a company increases its price, all its customers leave it, so that the demand curve faced by an oligopolist that produces a homogeneous product can be perfectly elastic.
Answer:
9,792 total interest expense
Explanation:
face value 96,000
issued at 94,080
<em>discount 1,920</em>
<u><em>amortization of the bond:</em></u>
discount/total payment
10 years atsemiannual payment = 20 payment
1,920/20 = 96
<u><em>cash proceed:</em></u>
96,000x 10%/2 = 4,800
discount 96
<u>interest expense 4,896 per payment</u>
2 payment per year 9,792 total interest expense
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Answer:
Paid in capital treasury stock = $1,600
Explanation:
Paid in capital treasury stock = (Market value - purchase value) × Number of share reissued.
Given,
Reacquired treasury stock = 2000 shares
As the shares were reacquired for $20,
Reacquired total treasury stock = 2,000 shares × $20 = $40,000
Reissued number of shares = 800
Market price of those treasury stock is $22 per share.
Therefore, paid in capital - treasury stock = $(22 - 20) × 800 shares
Paid in capital - treasury stock = $1,600
Answer:
a) savings equals investment spending.
Explanation:
Savings is the part of the income that is not used and investment is money that is spent on capital. Savings-investment spending identity is a concept that says that the amount saved in an economy equals the amount invested. This because investments depend on the amount of savings available.