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dsp73
3 years ago
7

A perfectly competitive industry exists under which of the following conditions? I. The product sold is similar across firms. II

. There are many sellers, each small relative to the total market. III. There are many sellers, each with total assets less than $2 million. IV. The threat of competition exists from potential sellers that have not yet entered the market.
Business
1 answer:
Oksanka [162]3 years ago
3 0

Answer:

I, II, and IV only

Explanation:

  • A perfect competition is defined by an idealizing market and shows that the market will reach equilibrium.
  • The prevalence of the perfect competition needs a larger number of buyers and sellers, well defined property rights and homogenous products, profits maximization, rational buyers and no barriers to entry and exit.  
  • <u>An example of the agricultural markets as perfect competition, as there are numerous farmers that sell the same vegetables and fruits and have same prices. Another example is that of the foreign exchange markets was the trader's exchange currencies and sell identical goods.</u>
You might be interested in
Both Bond Bill and Bond Ted have 10.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 ye
AURORKA [14]

Answer:

Ans,

a) If interest rates suddenly rise by 3 percent, Bill´s bond would drop by -20.02%  and Ted´s bond would go down by -36.07%

.

b) If rates were to suddenly fall by 3 percent, Bill´s bond would rise by 26.79%

and Ted´s bond would rise too by 86.47%

.

Explanation:

Hi, first let´s go ahead and establish the stable scenario, for that we are going to use the information of the problem but we need to add the discount rate of the bond or yield, which is the missing information. All this so this concept can be explained in a better way, so for this example we´ll say that the yield of both bonds is 10% compounded semi-annually, the same units as the coupon. Now we have to use the following formula.

Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }

Where:

Coupon = (%Coupon/2)*FaceValue= (0.104/2)*1,000=52

Yield = we are going to assume 10% annual, that is 5% semi-annual

n = Payment periods (For Bill n=5*2=10, for Ted, n=22*2=44)

So, let´s see what is the price of each bond if the yield was 10% annual compounded semi-annually.

Price(Bill)=\frac{52((1+0.05)^{10}-1) }{0.05(1+0.05)^{10} } +\frac{1,000}{(1+0.05)^{10} } =1,015.44

In Ted´s case, that is:

Price(Ted)=\frac{52((1+0.05)^{44}-1) }{0.05(1+0.05)^{44} } +\frac{1,000}{(1+0.05)^{44} } = 1,035.33

Now, if the interest rate (Yield) suddenly goes up by 3%, this is what happens to Bill´s Bond

Price(Bill)=\frac{52((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} } +\frac{1,000}{(1+0.08)^{10} } = 812.12

If yield goes down by 3%, this is the new price of Bill´s bond.

Price(Bill)=\frac{52((1+0.02)^{10}-1) }{0.02(1+0.02)^{10} } +\frac{1,000}{(1+0.02)^{10} } =  1,287.44

Now, in the case of Ted, this is what happens to the price if the yield goes up.

Price(Ted)=\frac{52((1+0.08)^{44}-1) }{0.08(1+0.08)^{44} } +\frac{1,000}{(1+0.08)^{44} } =  661.84

If it goes down by 3%, this would be the price for Ted´s bond.

Price(Ted)=\frac{52((1+0.02)^{44}-1) }{0.02(1+0.02)^{44} } +\frac{1,000}{(1+0.02)^{44} } =   1,930.56

Now, in percentage, what we need to use is the following formula.

Change=\frac{(VariationValue-BaseValue)}{BaseValue} x100

For example, in the case of Bill´s bond, which yield went up by 3%, this is what we should do.

Change=\frac{(812.12-1,015.44)}{1,015.44} x100=-20.02Percent

So, the price variation is -20.02% if the yield rises by 3%.

This are the results of the prices and calculations for you to answer this question. Best of luck.

                         Bill        Ted                       % (Bill)       %(Ted)

Base Price     $1,015.44    $1,035.33    

(+) 3% Yield  $812.12          $661.84      -20.02%          -36.07%

(-) 3% Yield  $1,287.44     $1,930.56       26.79%            86.47%

5 0
3 years ago
PLEASE ANSWER WITH 100% THE CORRECT ANSWER ASAP IF YOU DON'T KNOW THE ANSWER THEN DON'T ANSWER
valkas [14]

1. Unions have been in decline since the 1960s because of

Answer: <u>A. foreign competition.</u>

Explanation: Unions were often conducted in the past in order to protect workers from<em> "arbitrary decisions" </em>of employers. Such decisions resulted to the<em> laying off of workers </em>and<em> cutting of wages</em>. On the contrary, business owners have a different goal. They wanted to make more profit by cutting the wages, so they didn't like the unions. However, unions have been in decline in the 1960s, mainly because of international/foreign competitions. This is because the "bargaining power of the unions as they represent the employees were reduced."

2. When a bank evaluates a person for a loan, what does the word "capacity" refer to?

Answer: <u>C. The ability to make payments on time.</u>

Explanation: A bank evaluates a person for a loan according to his "capability to pay" the loaned amount. It is not according to his willingness to pay, but to his<em> "ability to return the money</em>." In order to know whether a person is capable of repaying the money on time, the bank analyzes the borrower's gross income and his debt.

6 0
3 years ago
Josiah, the new Director of HR for a growing marketing firm announces that they will implement "Integrated Talent Management" in
katrin [286]

Answer:

The correct answer is d. Use of analytics and techniques which connect multiple processes associated with employee development and career management.

Explanation:

Integrated talent management is basically a process of continuous improvement, in this case of the marketing team. Employees enter a career plan where the company offers all the guarantees so that their performance in their functions is better and better, for this it is necessary to implement a policy that defines the way in which the strategy will be addressed, communicating it to all old and new employees so that they are aware of the growth processes and the different possibilities offered.

4 0
3 years ago
4. It's important to remain open during communication and understand that communication and dialogue involves ______ the thought
Shkiper50 [21]

I would think that the answer is influencing. I hope this helps lmk. =)

6 0
3 years ago
Read 2 more answers
Consider the following​ alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 y
Svetradugi [14.3K]

Answer:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

Raking 2% interest rate:

1) 10 years

2) 5 years

3) 1 year

Raking 18% interest rate:

1) 1 year

2) 5 years

3) 10 years

Explanation:

You have to apply to bring the amount of money to present value, according with the information, the formula is the next:

Present Value = Future Value/((1+ interest rate)^(n))

Where n is the number of years that you have to wait to receive the money.

You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:

Present value = 140/ ((1+10%)^(1))=  127    

                       =  140/ ((1+10%)^(5))=   149    

                        =  140/ ((1+10%)^(5))=   135

So the answer for the first scenario with an interest rate of 10% is:  

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

5 0
3 years ago
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