Answer:
C) A firm's marginal cost curve is equal to its supply curve for prices above average variable cost
Explanation:
A perfectly competitive firm maximizes its profit when its marginal cost = marginal revenue. In the short run, it will continue to produce even if the marginal revenue is lower than its marginal costs, as long as the marginal costs are ≥ average variable costs.
Therefore, all perfectly competitive firms should supply products or services following its marginal cost curve as long as the price ≥ average variable costs.
Answer:
E. above; surplus; downward
Explanation:
The options to this question wasn't provided. The full question can be found here : https://www.chegg.com/homework-help/questions-and-answers/price-equilibrium-price-would-expect-causing-market-put-pressure-price-went-back-equilibri-q29621799
When price is above equilibrium price, the quantity supplied exceeds quantity demanded. This leads to a surplus. This places a downward pressure on price. Price falls until equilibrium price is restored.
When price is below equilibrium price, the price of goods become cheaper. The quantity demanded increases while the quantity supplied falls. This leads to a shortage and places an upward pressure on price. Price rise until equilibrium price is reached .
I hope my answer helps you.
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.
High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
Managers need to pay attention to dealing with uncertain and competitive conditions. This is part of the mission and vision statements and has to do also with types of planning. The strategic planning includes long term decisions about the overall direction of the company. Conditions can change rapidly and managers must be aware of that .
Answer:
Risk-free rate decreases
Explanation:
The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:
1. the market rate of return,
2. the beta value
3. the risk-free rate.
Ra = Rrf + [Ba∗(Rm−Rrf)]
where:
Ra=Cost of Equity
Rrf = Risk-Free Rate
Ba = Beta
Rm=Market Rate of Return
From the formula
Ra = Rrf + [1.2∗(Rm−Rrf)]
Ra = Rrf + 1.2Rm - 1.2Rrf
From Ra = 1.2Rm -0.2Rrf
From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.
