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matrenka [14]
3 years ago
15

The exit of existing firms from a competitive market will a. decrease market supply and increase market price. b. decrease marke

t supply and decrease market price. c. increase market supply and decrease market price. d. increase market supply and increase market price.
Business
1 answer:
makvit [3.9K]3 years ago
4 0

Answer:

The correct answer is option A.

Explanation:

The exit of existing firms from the market will reduce the overall market supply. This will cause the market supply curve to move to the left.

This leftward shift in the market supply curve will lead to an increase in the equilibrium price. The equilibrium quantity will be reduced.

The other firms in the market will get more market share and higher profits.

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This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa
allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

Explanation:

As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0
3 years ago
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positivel
Dmitry_Shevchenko [17]

Answer:

a) Portfolio ABC's expected return is 10.66667%

Explanation:

The expected return is based on the risk factor of a project. If a project has higher risk its rate of return will be higher. Portfolio ABC has one third of its funds invested in each stock. The return of on A and B are 20% and 10%. Their beta is 1.0 for both the stocks while stock C has beta 1.4. The portfolio expected return will be 10.66667%.

5 0
3 years ago
Sellers allow customers to use credit cards for all of the following reasons: (You may select more than one answer. Single click
Tasya [4]

Answer:

c. seller receives cash sooner than if credit is granted directly to the customers

d. may allow seller to increase sales volume

Explanation:

When a customer uses a credit card, the bank that issued the card pays the seller immediately, and later, the bank recovers the money plus interest from the customer.

So this method allows for a faster collection of cash (basically immediatly) than if the seller granted the credit directly to the customer.

Credit cards also allow seller to increase sales volume because many people lack the cash necessary to pay down the full value of the purchase.

7 0
3 years ago
A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
coldgirl [10]

Answer: ethnocentric

Explanation:

6 0
3 years ago
Use the following information to answer the next two questions. Downey Company bought a delivery truck for $62,000 on January 1,
natita [175]

Answer and Explanation:

The computation of the depreciation expense and book value at the end of 2016 is shown below:

But before that first determine the cost of the asset which is

Cost of the asset is

= Purchase price + rear hydraulic  lift + sales tax

= $62,000 + $8,000 + $3,000

= $73,000

Now the depreciation expense is

= ($73,000 - $8,000) ÷ (10 years)

= $6,500

ANd, the book value is

= $73,000 - $6,500 × 2

= $60,000

7 0
3 years ago
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