Which is true of output-choice models of oligopoly behavior?

Jason is shopping for a new car. He completes new credit applications at four different dealerships. Will this affect his credit

trasher [3.6K]

Applying for a loan in each of the dealerships he visited will have negative consequences on his credit score.

The credit score is a term to refer to the score that people have toward the financial system. The credit score is a kind of business card for each person regarding their financial life.

One of the most common mistakes people make is when they make multiple credit applications when they intend to buy something because this is a bad practice for their credit score.

For example, if Jason completed credit applications in four different dealers, his score may drop because the entities that are going to lend him the money consider this activity as something negative.

In addition, people who apply for loans in different entities are generally forced to do so because they are denied the possibility of credit, that is, they have an unfavorable history to access a loan.

Learn more in: brainly.com/question/16663880

8 0

3 years ago

Consider the economies of Sporon and Gribinez, both of which produce agricultural products using only land and labor. The follow

dusya [7]

Answer:

Sporon

2020 $15

2021 $14

2022 $12

2023 $10

Gribinez

2020 $9

2021 $10

2022 $11

2023 $12

Real GDP per capita rose from 2020 to 2023 as population increased.

Explanation:

Real Per capita GDP measures the standard of living of the people in a country. The higher the Real Per capita GDP, the higher the standard of living

Real Per capita GDP = Real GDP / population

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Sporon

2020 : $15,000 / 1000 = $15

2021: $28,000 / 2000 = $14

2022 : $36,000 /3,000 = $12

2023: $40,000/4000 = $10

Gribinez

2020 : $4500 / 500= $9

2021 : $10,000 / 1000 = $10

2022 $16,500 / 1500= $11

2023: $24,000 / 2000 = $12

The real GDP per capita of Gribinez rose from 2011 to 2014 as population increased because the rate of increase of real GDP per capita was higher than the rate of increase in population

Rate of increase of population in 2022 = (1500 / 1000) - 1 = 0.5 = 50%

Rate of increase in Real GDP in 2022 = (16500 / 10,000) - 1 = 0.65 = 65%

7 0

3 years ago

Stock A has a beta of 0.7, whereas Stock B has a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the followi

lorasvet [3.4K]

Answer:

a. The required return on Portfolio P would increase by 1%

Explanation:

Assume that in the given question, the Market risk premium is 7% while the risk free return is 5%, then according to the Capital asset pricing model(CAPM), the expected return of stock A and B will be calculated as follows:

CAPM=Risk free return+Beta(Market risk premium)

Expected Return on stock A=5%+0.70*7%=9.9%

Expected Return on stock B=5%+1.30*7%=14.1%

Since the equal amount of 50% of portfolio P has been invested in the stock A and B, therefore, the return on the portfolio P shall be calculated as follows

Expected return on portfolio P=0.50*9.9%+0.50*14.1%=12%

If the market risk premium is increased by 1% i.e. from 7% to 8%, then the expected return of the Stock A and B shall be calculated as follows:

Expected Return on stock A=5%+0.70*8%=10.6%

Expected Return on stock B=5%+1.30*8%=15.4%

Expected return on portfolio P=0.50*10.6%+0.50*15.4%=13%

So the expected return on portfolio P has been increased by 1% i.e. from 12% to 13% when the market risk premium has been increased by 1%.

Based on the above calculations, the answer shall be a. The required return on Portfolio P would increase by 1%

4 0

3 years ago

Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but

Alexxx [7]

Answer:

False

Explanation:

Agency cost is a term used in Administration to describe a special type of expense that arises from conflicts of interest existing in an organization.Within the context of financial management, the main agency conflicts are:

-Between shareholders and managers :Theory of the principal — agent or the problem of the principal — agent is a theoretical model of economics designed to understand management situations between unequal actors having different degrees of awareness (asymmetric information): the person giving the order (principal) is usually located in the highest hierarchical position and awaits the solution of the task in his interests; on the other hand, the person executing the order (agent: manager or economic agent) is in the lower hierarchical position, but has more information than the principal and can use this information either in the interests of the principal or in his own interests. To solve this problem, various strategies are proposed, such as trusting relationships, general information systems, or focused incentives.

In general, to alleviate agency conflicts, shareholders bear the agency cost, which includes all the relative costs to make the interests of the managers aim to meet their own interests, which is to maximize the share price from the company. However sometimes the shareholders may want management to run the company in a fashion which increases shareholder value.

- Among shareholders and creditors.

5 0

3 years ago

Read 2 more answers

Participants receive all levels of a(n) __________ variable, but only one level of a(n) ____________ variable.

Dominik [7]

Independent; dependent

3 0

3 years ago