Answer: An Oligopolistic market.
Explanation:
An Oligopolistic market is a market where they are very few supplies of a product and as such they charge higher prices due to the reduced competition.
In such a market the firms have to be very mindful of how their actions will impact that of their competitors because with such few competitors, they could easily lose customers if another oligopoly decides to change prices for instance.
They generally avoid doing so though because a price change by one will lead to a price change by others which would end up reducing the total amount that each firm makes as the prices will usually go downwards not up unless they collude.
When a monopolist's level of output is not at the minimum point of <u>average total cost</u>, this means it will not be productively efficient.
<h3>What is an
average total cost?</h3>
An average total cost refers to a cost derived from total fixed and variable costs divided by total units produced.
In conclusion, this cost is used to evaluate how the total per-unit cost change as a result of output
Read more about average total cost
<em>brainly.com/question/25109150</em>
Answer:
A) Overcoming
Explanation:
In this production process the fact that operation Y can only process 50 units per hour while the preceding operation (X) can process 55 units per hour will result in a queue and a capacity constraint.
If operation Y's effective capacity is increased to match operation X's, then the constraint has been overcome.
Answer:
the after-tax cost of debt is 13.24
Explanation:
The after-tax cost of debt is the initial cost of debt as a result of the incremental income tax rate.
The after-tax cost of debt is dependent on the incremental tax rate of a business. If profits are low, a business would pay low tax rate, which means that the after-tax cost of debt will increase. Also, if the business profits increase, they would pay higher tax rate, so its after-tax cost of debt will decline.
Given that:
Required return (r) = 11.50% = 0.0115
The yield on a 20-year treasury bond (y) = 5.50% = 0.055
beta (b) = 1.29
rs = y + (r -y) x b
after-tax cost of debt = 5.50% + (11.50% - 5.50%) x 1.29
after-tax cost of debt = 13.24%
Answer:
The value of the bond is 1,003.8771 after subtracting the accrued interest to the market value of the bond.
Explanation:
From the amount provide by the Wall Street Journal there are two component, the bonds value and the interest accrued over time.
we should calcualte the interst and subtract to get the bond value:
principal x rate x time = interest
rate and time should match, so the 5% rate should be convert into a 2.5% rate and we express time as portion of 182 days:
1,000 x 0.025 x (22-7)/182 = 2,060439 = 2.060439 interest
1,005.9375 - 2.0604 = <em>1,003.8771</em>
