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blagie [28]
2 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]2 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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On December 31 of Swift Co.’s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of it
pishuonlain [190]

Answer:

1. $66,000

2. $66,000

Explanation:

The computations are shown below:

1. Before written off:

= Account receivable balance - uncollectible amount

= $70,000 - $4,000

= $66,000

2. After written off:

= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount

= $70,000 - $700 - $4,000 + $700

= $66,000

8 0
3 years ago
Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcom
Marina86 [1]

Answer:

29.71 per machine-hour

Explanation:

Buker corporation has an estimated machine hours of 74,000

The estimated variable manufacturing overhead is 7.67 per-machine hour

The estimated total fixed manufacturing overhead is $1,630,960

The first step is to calculate the estimated overhead cost

= (74,000×7.67) + $1,630,960

= 567,580 + $1,630,960

= $2,198,540

Therefore, the predetermined overhead rate can be calculated as follows

Predetermined Overhead rate= Estimated manufacturing overhead cost/Estimated machine hours allocated

= $2,198,540/74,000

= 29.71 per machine-hour

Hence predetermined overhead rate for the recently completed year was closest to 29.71 per machine-hour

6 0
2 years ago
What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and
Gala2k [10]

Answer:

Current Price of the Share Stock is $ 37.86 (D)

Explanation:

Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).

Where;  Po ⇒Market Value excluding any dividend currently payable

            D1= Do(1+g)⇒Expected dividend in one year's time

            Ke =Required rate of return by shareholders

             g= Dividend growth rate

<u>Calculation</u>

D1 = 5(1+0.06)= $5.3

Hence, Po= 5.3/(0.20-0.06)

            Po=$37.86

The share price is expected to reflect the future expected stream of income i.e  dividends and capital gains ,discounted at an appropriate cost of capital.

Some of the assumptions of dividend valuation method include but not limited to the following:

- it assumed that investors act rationality and in the same way ;

-the dividend either show growth or no growth;

-the discount rate used exceeds the dividend growth rate.

5 0
3 years ago
Suppose your college or organization is considering a new project to develop an information system that would allow all employee
Varvara68 [4.7K]

Answer:

The description of the given question is explained below in the explanation portion.

Explanation:

Risk 1: <u>New customer</u>

  • Our advantage comes from developing strong client relationships, that also typically lead to other initiatives with this client.

Risk 2: <u>Poor cost estimate</u>

  • It's always research linked towards the building of educational business process, therefore a complicated project consisting of several components including students, instructional personnel, and clients.

Risk 3: <u>Difficult to maintain</u>

  • Throughout the long term, disproportionately numerous people will be able to use that same technology in some of these circumstances.
8 0
2 years ago
Identify the kind of decision-making process that the management follows in the given scenario. Lilian is a fruit grower and dis
IRINA_888 [86]

Basic and Routine decisions is the kind of decision-making process that the management follows in the given scenario.

<h3><u>Explanation:</u></h3>

Basic decision are taken when some crisis arises. These decisions require the formulation of new rules with different thinking process.

<u>Example:</u> Location of plant, plant diversification and selection in distribution of channels.

For an organization basic decisions are of strategic aspects and routine decisions are of tactical aspects. Since routine decisions are of repetitive nature and need small consideration based on the decision made. Lilian has to make decision to improve the quality of the product and the soil and also need to rent new farms.

4 0
3 years ago
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