Answer:
their total wealth
-their future expenditure needs
-the risk on the security
Explanation:
Financial System
This simply are markets and various financial units or intermediaries that help transfer financial assets, real assets, and financial risks in various forms from one person to another, from one place to another, and from one point to another
3 Main functions of the Financial System
1.) The achievement of the purposes for which people use the financial system
2.) The discovery of the rates of return that equate aggregate savings with aggregate borrowings
3.) The allocation of capital to the best uses
An investment
This is simply defined as the current commitment of current resources in the hope of getting greater resources in the future. It reduces current consumption in hopes of greater future consumptions. When making investment, different actions are considered before decision making.
Answer:
$721,000 is correct
Explanation:
Cost of goods sold =754000 + 125000 -158000
=721,000
Answer: c. Marginal Cost
Explanation:
A Competitive firm operates in a market where they are price takers. This means that the price they charge is equal to both their average revenue and their Marginal Revenue.
P = MR = AR
Companies maximise profit at a point where Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized.
If the Competitive firm's Price is the same as its Marginal Revenue this means that to maximise profits, the firm should choose an output level where the price is equal to the marginal cost.
Answer: please refer to the explanation section
Explanation:
Assume we have two accompanies in the market Firm A and Firm B and the Demand curve be Dq. When Firm A and Firm B form a Monopoly through Collusion the will split the demand in half, each firm will act as if its demand curve is Dq/2.
Firm A = Dq/2, Firm B = Dq/2. Firm A will supply Q/2 units and Firm B will supply Q/2 units. The Market Demand curve will the combined demand curves of both firms. Market Demand Curve = Dq/2 + Dq/2 or simply Dq
Pure competition or perfect competition is where all firms have full knowledge of what is going on in the market, where there is free flow of information between not only the producers, but also with the consumers.
As such, all firms have no dominant share of market power since each individual firm is able to produce the good of the same quality and quantity (factors of production are fluid, and no costs in transportation in this theory). And at the same time, consumers have full knowledge of the quality of good they are getting and hence no firm will be able to exploit the misinformation of a good for its own profits.
This builds up to the point of a perfectly elastic demand curve, where consumers know what amount and at which price point do they value the product at. And knowing for the fact that small individual firms in a purely competitive firm have no say over prices, they become the price takers for this kind of market. Thus where MB=MC, the equilibrium point is reached and it is also at the socially optimal level since all consumers have full knowledge of the pros and cons of consuming a product (hence no externalities).
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