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blagie [28]
3 years ago
8

In a Cournot market with two firms, the inverse market demand curve is P = 20 – 0.5Q, where Q = q1 + q2. (Firm 1's output = q1;

Firm 2's output = q2.) If Firm 2 produces 20 units of output, Firm 1's residual marginal revenue curve is depicted in:
Business
1 answer:
Ksenya-84 [330]3 years ago
4 0

Answer:

MR = 10 – 1q1.

Explanation:

Demand function, P = 20 – 0.5Q

Q = q1 + q2

Now insert Q in the P = 20 – 0.5Q.

P = 20 – 0.5 (q1 + q2)

We have the value of q2 = 20.

P = 20 – 0.5 (q1 + q2)

P = 20 – 0.5 (q1 + 20)

P = 20 – 0.5q1 – 10

P = 10 – 0.5q1

Total revenue of firm 1, TR = Pq1

TR = 10q1 – (0.5q1)^2

Now MR is the differentiation of TR. So the MR after differentiation if TR of firm 1 is:

MR = 10 – 1q1

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Saint Nick Enterprises has 17,500 shares of common stock outstanding at a price of $69 per share. The company has two bond issue
mihalych1998 [28]

Answer:

total weight of debt = 0.343 or 34.3%

Explanation:

stock's market value = 17,500 x $69 = $1,207,500

bond₁'s market value = $250,000 x 101.5% = $256,750

bond₂'s market value = $350,000 x 106.5% = $372,750

total market value of the firm = $1,837,000

weighted capital structure:

                                       market value            weight

stocks                             $1,207,500               0.657

bond₁                              $256,750                  0.140

bond₂                              $372,750                  0.203

total                                $1,837,000                 1

total weight of debt = 0.343 or 34.3%

8 0
3 years ago
Stock R has a beta of 1.8, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free
PIT_PIT [208]

Answer:

Stock R more beta than Stock S = 4.2%

Explanation:

given data

Stock R beta = 1.8

Stock S beta = 0.75

expected rate of return = 9% = 0.09

risk-free rate = 5% = 0.05

solution

we get here Required Return

Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta  ...........1

Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B

Required Return (Re) =

so here

Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8

Stock R = 0.122  = 12.2 %

and

Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75

Stock S =  0.08 = 8%

so here more risky stock is R and here less risky stock is S

Stock R is more beta than the Stock S.

Stock R more beta Stock S =  12.2 % - 8%

Stock R more beta Stock S = 4.2%

4 0
3 years ago
False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash coll
gayaneshka [121]

Answer:

$607,000

Explanation:

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.

Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.

False Value estimates that 6% of all sales will be returned.

During 2016, customers returned merchandise for credit of $28,000 to their accounts.

False Value's 2016 income statement would report net sales of:  

The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000

Hence Net Sales will be 650,000 - 43,000 = $607,000

5 0
3 years ago
If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian dollars will buy ____ worth of
Mazyrski [523]

Answer:

U.S. dollars = 14.012 U.S. dollars

Explanation:

Below is the exchange rate:

0.92777 Canadian dollars = 1 U.S dollars

Thus to find the amount of U.S. dollars bought from the 13 Canadian dollars, just divide the 13 Canadian dollars from 0.92777. Therefore the resulting answer will be the U.S. dollars.

U.S. dollars = 13 / 0.92777

U.S. dollars = 14.012 U.S. dollars

8 0
3 years ago
Qucation
RUDIKE [14]

As a result of the record amount of grapes, the equilibrium price decreases while the equilibrium quantity increases. Please find attached the required graph.

<h3>What is the impact of the record amount of grapes?</h3>

If there is a record amount of grapes produced, the amount of wine produced would increase. This is because grapes are an input used in the production of wine.

As a result, the supply of wine would increase. This would lead to a shift to the right of the supply curve for wine. the equilibrium price decreases while the equilibrium quantity increases.

To learn more about supply curves, please check: brainly.com/question/26073189

3 0
2 years ago
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