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stellarik [79]
3 years ago
10

(8 points) Portland and Aleland are two identical countries. Beer manufacturers in each country compete under monopolistic compe

tition. a.Suppose the two countries engage in trade. Describe the impact of free trade on consumers in Portland. b.How does trade affect the productivity of surviving domestic producers in Portland
Business
1 answer:
777dan777 [17]3 years ago
3 0

Answer:

Explanation:

a) Consumers in Portland will gain from an increase in the varieties of beer available through importing. Additionally, prices will fall due to the increased competition.

b) By selling abroad, the producers in Portland will be able to lower their average costs through increasing returns to scale. However, they will face greater competition in their local market due to new varieties available from the import of beer from Aleland. As a result of the competition from Aleland, consumer demand for their variety decreases, thus driving their prices down.

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Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year
Ivanshal [37]

Answer:

There is no correct answer is these options. But the correct answer is $113.41

Explanation:

The formula to solve this is:

Po = D1/r - g

Po is the Current price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate.

This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;

D1(Dividend in year 1) is $3.15( $2.42 x 1.3)

D2(Dividend in year 2) is $3.78(3.15 x 1.2)

D3(Dividend in year 3) is $4.15($3.78 x 1.1)

D in subsequent years is $4.36(4.15 x 1.05)

P3(price of stock in year 3) = $4.36/0.083 - 0.05

=$132.12

Now the stock's current market value is

$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3

The price of the stock is $113.41

4 0
3 years ago
The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called:
olganol [36]

The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

<h3>What is optimal-wage theory?</h3>

Optimal efficiency wage is one that that do occur when marginal cost of an increase in wages can be attributed to the marginal benefit associated to productivity.

Hence, idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

Learn more about optimal-wage theory at:

brainly.com/question/11555274

#SPJ1

8 0
1 year ago
Jacob wants to invite 20 friends to his birthday, which will cost his parents $250. If he decides to invite 15 friends instead,
ehidna [41]
The answer would be 187.50

250 $ for 20 friends would be $12.50 per friend. So, 12.5 x 15 = $187.50
4 0
2 years ago
The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte
11111nata11111 [884]

Answer: $135

Explanation:

First find the future value of the proceeds.

= 10,000 * (1 + 5%)⁷

= $14,071

The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.

Convert the interest rate into monthly figure:

= 3%/12

= 0.25%

Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)

14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)

14,071 = Annuity * 103.82

Annuity = 14,071 / 103.82

= $135.53

= $135

5 0
3 years ago
The fundamental purposes of communication are to provide information and instructions, to influence others, and to ________ acti
SSSSS [86.1K]
You don't communicate to convey activities, or to integrate activities. We can, therefore, eliminate answers "a," "b," and "e." 

So is our purpose to discuss or organize an activity? Either answer fits. We discuss activities to gather the opinions of others regarding said activities. But discussing is, itself, a form of communicating, it is not an outcome. The other points listed are outcomes "we provide... influence... [through communication]." Therefore, the answer must be "c. organize".
3 0
3 years ago
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