Production possibilities curve between the two goods will be a straight, downward-sloping line if the opportunity cost rise.
<h3>What is production possibilities curve?</h3>
The production possibilities curve serves as graph that display the relationship between the resources and the output that can be produced.
Therefore, when the opportunity cost that exists between two goods, there will be. downward slope as regards the production possibilities curve.
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Reduction in the price. If they do not reduce the price, then people will not buy the product, and they will be left with too many of the same products.
Answer:
The correct answer is letter "B": predatory pricing.
Explanation:
Predatory pricing refers to companies setting prices below the average level in an attempt to wipe out competition. In the beginning, consumers may benefit from the low prices but after the competition has disappeared, the predatory company raises the prices, but, in this scenario, consumers do not have substitutes from where to choose. The predatory company became a monopoly.
Predatory pricing practices are forbidden by the Federal Trade Commission (FTC) in the U.S.
Answer:
Market price is unaffected by announcement
Explanation:
This question says that the company has announced intentions to issue $289 million of debt with intentions of buying common stock with proceeds
Price per share has been given as $10. The market price of the stock would not get affected by this announcement.
I have gone ahead to help you calculate the buyback, market value and debt ratio.
Buyback= $280/10 = 28 million shares
Market value = (37-28)*10 + 280 = 370 million
Debt ratio = 280/370 = 76%
