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Nikolay [14]
3 years ago
15

Assume there are currently five firms producing and selling computer chips in the European market. Also assume that the product

is differentiated and barriers to entry are high in the industry, making this market an oligopoly. If two firms were to exit the market, economists expect the equilibrium price will likely:
a. not change
b. decrease
c. increase
Business
2 answers:
Gnom [1K]3 years ago
4 0

Answer:Increase

Explanation:The demand will increase as these two companies exit the market because the competition has been reduced as the demand increases this will caus the equilibrium price to increase. People will be demanding more chips only from the three companies that will be remaining.They will have to supply more in return to that demand because the competition has been cut.

irina1246 [14]3 years ago
3 0

Answer: C. Increase

Explanation:

An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market.

Where few firms dominate the equilibrium price will increase because the demand will be high, and this will make the equilibrium price increase.

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A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month.
Gennadij [26K]

Answer:

a. 1.51 containers

b. Fewer

Explanation:

The computations are shown below:

a. The number of containers would be

= Annual demand × time × (1 + inefficiency factor) ÷ holding pieces

= 70 × 0.75 × (1 + 0.15) ÷ 40

= 1.51 containers

The time is converted from minutes to hour i.e 45 minutes ÷ 60 minutes = 0.75

b. If the system improves, the fewer containers are required i.e 2 containers approximate because inefficiency factor got decreased

6 0
3 years ago
2. The following table provides information about the production possibilities frontier of a Country.(4)
iren [92.7K]

Based on the PPF of the country, if the country were to produce an additional 20 computers at that level, the opportunity cost would be 40 kg of wheat.

If a technological advancement allows for computers to be produced more efficiently, the PPF would expand outwards as shown in the attachment.

<h3>What would be the opportunity cost?</h3>

At the point where this country can produce 10 computers, the amount of wheat it can produce is 400 kg wheat.

If it produces 20 more computers, it will move to the point where it can produce 30 computers and 360 kg of wheat. Opportunity cost would be:

= 400 - 360

= 40 kg wheat.

<h3>What happens due to a technological advancement?</h3>

When there is an improvement in technology, the production capacity of a nation increases. This leads to the production possibilities frontier expanding outward.

Find out more on the production possibilities frontier at brainly.com/question/26685094.

3 0
2 years ago
The computation and interpretation of the degree of combined leverage (DCL)You and your colleague, Malik, are currently particip
erastova [34]

Answer:

1. expected to be the same

2. expected decrease to 1.11

3. expected decrease to 2.67

Explanation:

1. Degree of Operating Leverage = Contribution margin ÷ Earning before interest and tax

= $48,000,000 ÷ $20,000,000

= $2.40

2. Degree of Financial Leverage = Earning before interest and tax ÷ Earning before tax

= $20,000,000 ÷ $16,000,000

= $1.25

3. Degree of total leverage = Contribution margin ÷ Earning before tax

= $48,000,000 ÷ $16,000,000

= $3.00

The repayment 50% of bank loan

1. The Degree of Operating Leverage is expected to be the same.

2. Degree of Financial Leverage = $20,000,000 ÷ $18,000,000 = 1.11

The Degree of Financial Leverage is expected to be decrease to 1.11

3. Degree of total leverage = $48,000,000 ÷ $18,000,000 = 2.67

The Degree of total leverage is expected that it will decrease to 2.67

4 0
3 years ago
Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in
alina1380 [7]

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.

8 0
3 years ago
Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60.
maksim [4K]

Answer:

10.71%

Explanation:

The computation of the required rate of return on this preferred stock is shown below :

The Required return on preferred stock is

= Dividend ÷ market value of preferred stock

= 7.50 ÷ $70

= 10.71%

By dividing the dividend from the market value of preferred stock  we can get the  Required return on preferred stock and the same is to be considered

therefore we ignored the par value i.e $60 as this is not relevant

5 0
3 years ago
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