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Elena-2011 [213]
3 years ago
13

In the long​ run, profits will equal zero in a competitive market because of

Business
1 answer:
aliya0001 [1]3 years ago
7 0
<span>In the long​ run, profits will equal zero in a competitive market because of free entry and exit.

Because there is free entry in a market, the competition can come and go as they please.  This stops the ability for a company to have a monopoly because any company can come and sell the product. Companies are also able to leave a market but they may leave behind their goods without profit. 
</span>
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You discovered you can deduct medical expenses over 6% of your income. Your income is $42,000, and you had medical expenses of $
strojnjashka [21]
The answer is A. 0. 6% of $42,000 is $2520. You only have $567 in medical expenses. You're expense has to be more than $2520 before you can deduct it.
4 0
4 years ago
The Town of Conway opened a solid waste landfill in 1995 that is filled to capacity in the current year. The city initially anti
lisov135 [29]

Answer and Explanation:

Data provided

Initially anticipated closure costs = $2,000,000

The journal entry is shown below:-

Landfill Closure Liability  Dr, $2,000,000

        To Cash  $2,000,000

(Being landfill closure liability is recorded)

Therefore we debited the landfill closure liability as it decrease the liability and we credited the cash as decreases the assets.

3 0
3 years ago
Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. The
goldenfox [79]

Answer: the U.S. real interest rate and net exports will both rise.

Explanation: Due to the ongoing war abroad, there would be a reduction in production of goods and services in the affected countries and a rise in the production of goods and services in the safe haven country (US) leading to increased levels of export to meet the demand.

War affects investments negatively. As a result, investments are also moved to the US for safety. However, pressure on US producers and eventual shortage due to increased exports, would lead to inflation and increase in prices of goods and services. To mitigate these effects and to reduce the supply of money, government would increase interest rates.

This explains why both interest rates and export both rise.

5 0
4 years ago
cpnsider capm the risk free rate is ^5 and the expected return on the market is 18% what is the expected return on a stock with
borishaifa [10]

Answer:

Expected return = 21.9 %

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta</em>.  

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)  

This model can be used to work out the cost of equity as follows:  

Ke= Rf + β (Rm-Rf)  

Rf- 5%, β= 1.3, Rm- 18, E(r)- ?  

Ke =  5% + 1.3×(18-5)%=21.9 %  

Ke = 21.9 %

Expected return = 21.9 %

5 0
4 years ago
Fergie has the choice between investing in a State of New York bond at 5.9 percent and a Surething Inc. bond at 9.4 percent. Ass
choli [55]

Answer:

the interest rate that the state of New York bond need to offer to make Fergie indifferent is 6.58%

Explanation:

After tax returning surething bond = 9.4%*(1-30) = 6.58%

when New York bond offers 6.58%,Fergie will be indifferent between investing in the two  bonds

Therefore, the interest rate that the state of New York bond need to offer to make Fergie indifferent is 6.58%

6 0
3 years ago
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