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Stolb23 [73]
4 years ago
13

You are a self-employed profit-maximizing consultant specializing in monopolies. Five firms are currently seeking your advice, a

nd although the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run.
a. remain at the current output level
b. increase output
c. reduce output
d. shut down
Business
1 answer:
djverab [1.8K]4 years ago
6 0

Answer:

The answer is option A) The short run recommendation for a monopolistic firm is to remain at the current output level

Explanation:

In the short run, monopolistic firms could record losses but still continue to run in anticipation of a sustainable profit in the long run.

A self-employed profit-maximizing consultant specializing in monopolies understands that the short run losses experienced in a monopoly is also an advantage in that it reduces the participation of more players in the same industry/ market segment.

The best recommendation would be to remain at the current output level during the short run to cut losses, sustain patronage and then develop a long term strategy that will guarantee profitability in the long run.

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Answer:

$67.20

Explanation:

Given:

Dividends paid, D₀ = $3.20

Growth rate = 5%

Required return rate = 10%

Now,

The expected value of the company’s stock

= \frac{\textup{Last dividend( 1 + growth rate)}}{\textup{required return-growth rate}}

on substituting the respective values, we have

= \frac{\$3.20\times(1+0.05)}{\textup{0.1-0.05}}

or

= $67.20

Hence, The correct answer is option $67.20

6 0
3 years ago
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Answer:

a. Time

Explanation:

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4 years ago
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3 years ago
The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Accounts Fees earned $1,430,000 Of
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Answer:

Explanation:

Base on the description of the question, we can use the following method to solve the given problem

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Remsco has taxable income of $80,000 and a charitable contribution limit modified taxable income of $82,000. Its charitable cont
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Answer:

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