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Lorico [155]
4 years ago
7

Firms earning zero economic profit are

Business
1 answer:
worty [1.4K]4 years ago
3 0

Answer:

The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.

Explanation:

Because all resources are being used efficiently and there is no need to use them elsewhere.

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Refer to standard motor products. when standard motor products’ edwardsville plant decided to give its teams the highest level o
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3 years ago
What is productive​ efficiency?
Helga [31]

Answer:

The correct answer is (A)

Explanation:

Product efficiency is a key aspect which every firm or organisation must achieve to improve revenue and profits. Product efficiency is a way to allocate resource to produce goods and service at the lowest average cot possible. Firms usually apply economist of scale to achieve product efficient. Product efficiency can only be achieved by using scarce resources efficiently and effectively.

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3 years ago
What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0
3 years ago
Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar
andrey2020 [161]

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 =  $16

Contribution margin = $16

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3 years ago
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