Options:
a. 14.58%
b. 12.83%
c. 15.46%
d. 16.33%
e. 16.92%
Answer:
Correct option is A.
14.58%
Explanation:
After-tax yield = pre-tax yield x (1- marginal rate)
and Taxable-equivalent yield = tax-exempt yield / (1- marginal tax rate)
Hence Taxable-equivalent yield =.105/(1-.28)
=.105/.72=.14583333
=14.58 %
Answer:
Statement true for Imperfect Competition Markets
Explanation:
Marginal Revenue Product is additional revenue due to hiring of additional input, it is product of marginal product & marginal revenue = MP x MR
Value Marginal Product is money value of additional production with additional input, product of marginal product (MP) & price (AR), = MP x AR
Input demand curves are derived demand curves, derived from demand of final goods. In perfect competition, demand is perfectly inelastic & horizontal, AR = MR, so MRP = VMP in this case. In imperfect competition market (oligopoly, monopoly etc) - MR < AR, so MRP < VMP in this case.
Answer:
False
Explanation:
The market demand curve in perfect competition slopes downward.
Price is determined by the intersection of market demand and supply; under perfect competition, the individual firms don't have any influence on the market price.
Individual firms become price takers when the market price is determined by market supply and demand forces. Individual firms are forced to charge the equilibrium price of the market or the consumers would purchase the product from the many other firms in the market who are charging a lower price. The demand curve for an individual firm is, therefore, the same as the equilibrium price in the market
All individual firms are price takers in a perfectly competitive market. The price is determined by the intersection of market supply and demand curves.
The demand curve for an individual firm is not the same as the market demand curve. The market demand curve slopes downward, whereas the firm's demand curve is a horizontal line.
The firm's horizontal demand curve indicates a price elasticity of demand that is perfectly elastic
The horizontal demand curve of an individual firm indicates that the elasticity of demand for the good is perfectly elastic. This means that if any individual firm charged a price somewhat above market price, it would not sell any products.
Offering a firm's product at a lower price than the competitors is a strategy usually used to enhance market share. In a perfectly competitive market, firms cannot reduce their product price without experiencing a negative profit. Thus, assuming that each firm is a profit-maximizer, it will sell its output at the market price.
