Answer:
The linear demand function for Frog & Friends Shower curtains is q = -60p + 4,100
Explanation: $5 each ===> 3,800 curtains per month
$10 each ===> 3,500 curtains per month.
===> slope of the demand line is (3800-3500)/(5-10) = 300/-5 = -60
===> demand function is q = -60p + c for some constant c.
Let 3,800 = -60*5 + c.
=3800 = -300 + c
===> c = 4,100.
Therefore the linear demand function for frog & friends curtains is q = -60p + 4,100
Answer:
d) result in overproduction or underproduction of a good.
Explanation:
Market failure occurs when market forces fails to allocate goods and services efficiently.
The government usually intervenes to correct market failure.
Externalities usually lead to market failure.
Positive externality is when the benefits of economic activities to third parties exceeds its cost. Research and development usually yield postive externality.
Goods that yield postive externality are usually underproduced. Government can intervene by giving subsidies and grants which encourages production.
A negative externality is when the cost of economic activities to third parties exceeds the benefit. Pollution is an example of negative externality. Goods that yield negative externality are usually overproduced. Government can intervene by taxing companies producing negative externality. This would increase the cost of production and discourage production.
I hope my answer helps you
Answer:
Explanation:
New and improved products, services or technology from entrepreneurs enable new markets to be developed and new wealth to be created. Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending.Entrepreneurs boost economic growth by introducing innovative technologies, products, and services.
The cost of equity is 10.6%.
<h3>What is the explanation?</h3>
The calculation of the question is shown as follows:
Cost of equity = Risk - free rate + (beta*market risk premium)
Cost of equity = 3.25% + (1.4* 5.25%)
Which is equal to 3.25% + (7.35%)
hence cost of equity is 10.6%.
<h3>
What are retained earnings?</h3>
Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.
To know more about retained earnings, visit:
brainly.com/question/13980094
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The complete question is:
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.
Based on the CAPM approach, what is the cost of equity from retained earnings?
