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3 years ago

An industry consists of three firms with sales of $310,000, $725,000, and $405,000.

Business

1 answer:

Butoxors [25]3 years ago

7 0

Answer:

A. 3,789

B. 100%

C.5,000

Explanation:

(a) Total market ($'000) = 310 + 725 + 405 = 1,440

Firm 1 share = 310 / 1,440 x 100 = 21.53%

Firm 2 share = 725 / 1,440 x 100 = 50.35%

Firm 3 share = 405 / 1,440 x 100 = 28.12%

HHI = (21.53)2 + (50.35)2 + (28.12)2 = 3,789

(b) Since there are only 3 firms in market, therefore the four-firms concentration ratio will be 100% b

Post-merger HHI = (49.65)2 + (50.35)2 = 5,000

Yes. If the guideline considers any post-merger HHI above 1800 as highly concentrated market, this merger will be probably attempt to block a horizontal merger between two firms with sales.

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Suppose you want to invest $10,000. You have two options: (1) Invest in California municipal bonds with an expected rate of retu

galina1969 [7]

Answer:

a tax-rate for 33.33% will make both investment yield an equal return after-taxes

Explanation:

the municipal bonds aare tax free, while the J and K Corp.'s bond are subject to tax income.

threfore to be indifferent between these bonsd the tax rate will equal the corp bon rate after taxes with the municipal bond:

pretax x (1 - t ) = after tax

0.195 x (1-t) = 0.13

1 - 0.13/0.195 = t

t = 1/3 = 33.33%

8 0

3 years ago

Which of the following errors would cause the adjusted trial balance to be unequal? a. The adjustment for prepaid insurance was

zalisa [80]

Answer: Option (C) is correct.

Explanation:

There is a adjustment entry for depreciation of $3,545 but the amount that is debited as depreciation expense is different from the amount that is credited as accumulated depreciation.

Depreciation Expense A/C Dr. $3,454

To Accumulated Depreciation $3,545

This will lead to an unequal adjusted trial balance.

Option 'A' and 'B' has no effect on the adjusted trail balance to be unequal because whole transaction is omitted.

Option 'D' also has no effect on adjusted trail balance because the debit and credit amount will still match.

3 0

3 years ago

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to wh

kobusy [5.1K]

Answer:

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory

Explanation:

Cost of goods sold is the total direct costs of producing the goods sold by a company.

Cost of goods sold = cost of direct materials + cost of direct labour + Manufacturing Overhead + Beginning work in process inventory – Ending work in process inventory

7 0

3 years ago

Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a

melomori [17]

Answer:

$7.5

Greater

Explanation:

Price elasticity of demand = percentage change in quantity demanded/ percentage change in price

0.2 = 10%/ percentage change in price

percentage change in quantity demanded = 50% = 0.5

0.5 = (New price - $5) / $5

New price = (5 × 0.5) + 5 = $7.5

In the short run, demand is relatively inelastic because consumers need time to find suitable substitutes but in the long run, demand is usually more elastic.

I hope my answer helps you

5 0

3 years ago

Which statement or statements apply to a bond which is selling at a premium? I. The market value exceeds the par value. II. The

kherson [118]

Answer:

Its A

Explanation:

I took the test

6 0

2 years ago