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3 years ago

Explain why purely competitive markets tend to benefit consumers over producers.

Business

1 answer:

marissa [1.9K]3 years ago

7 0

As competitive markets are driven by quantity of product sales and vendors tend to lower prices to ensure sales.

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You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 percent. One is ordinary annui

Ivan

Answer:

c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due

Explanation:

Considering the following statements:

the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
In case of perpetuity the times is not limited, hence would get the higher return.

6 0

3 years ago

Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is: a. not

malfutka [58]

<span>a. not counted as part of the labor force</span>

8 0

3 years ago

During Carl’s first semester in college, he walks through his student union building everyday on his way to classes. At the begi

torisob [31]

Answer:

perceptual screen

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question Carl has most likely created a perceptual screen to shield him from all the competing messages. This term refers to a psychological window through which we interact with people that influences the quality, accuracy and clarity of the communication. Which seems to be the case with Carl, and why he no longer notices new groups or signs.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0

3 years ago

Lego is considering an investment in Disney corporation. The risk free rate is 5% and the Beta for Disney is 1.2. Lego requires

disa [49]

Answer:

17%

Explanation:

This can be calculated using the Capital Asset Pricing Model which is given as under:

Required Return = Rf + Beta factor * (Market Risk Premium)

By putting the values, we have:

Required Return = 5% + 1.2 * 10% = 17%

Disney need to earn 17% return on investment to trigger a Lego investment.

5 0

2 years ago

Read 2 more answers

Suppose that the money demand function is (M/P)d=1000-200r where r is the interest rate in percent. The money supply M is 1200 a

tatyana61 [14]

Answe and Explanation:

b) To find out the equilibrium interest we will equate the money demand function with the money supply:

1000 - 200(r) = 1200/2

r = 2%

c) If the price is fixed and if the supply of money of is increased from 1200 to 1400 then the supply of real balances will be 1400/2 = 700

The equilibrium interest would be:

1000 - 200(r) = 700

r = 1.5%

Thus, it shows that when the supply of money is increased and the price is fixed then the interest rate would fall from 2% to 1.5%

d) The supply of real balances would be 1600/2 = 800

Hence, the interest rate will be:

1000-200(r) = 800

r = 1%

As proved above, an increase in the money supply would decrease the interest rate keeping the price fixed.

e) If the Fed keeps the interest rate at 5% then,

1000 - 200(5) = Money supply/2

Money supply = 0

Reduce the money supply if the interest is increase from 2% to 5%

a) Picture is attached.

6 0

3 years ago