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MariettaO [177]
3 years ago
5

If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase

output until price equals marginal cost. decrease output until price equals marginal cost. not adjust output if marginal cost equals price.
Business
1 answer:
Musya8 [376]3 years ago
4 0

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

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Purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states can have an impact on a consu
quester [9]

Answer:

<u>Situational Influences </u>

Explanation:

Situational influences refer to those situation or state conditions which influence a buyers behavior. Physical, social and time factors or buyers own moods, affect a buyers buying habits i.e what the buyers buy and the quantity of purchases.

Physical surroundings refer to the physical situation of the buyer i.e the effect of location of the store, the design of the store etc.

Social surroundings refer to the effect of people who surround the buyer while he is considering a purchase.

Temporal effects refer to temporary or time bound situation of the buyer which relates to the time of the day a buyer visits the store.

Antecedent states refer to the pre existing state of mind of the buyer.

Collectively, these comprise situational influences in consumer buying decision process.

4 0
3 years ago
What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Ex
Romashka [77]

Answer: 25%

Explanation:

3 0
2 years ago
Both Bond Bill and Bond Ted have 6.2 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 yea
iragen [17]

Answer:

a-1. Percentage change in the price of Bond Bill = -8.07%

a-2. Percentage change in the price of Bond Ted = -21.12%

b-1. Percentage change in the price of Bond Bill = 8.94%

b-1. Percentage change in the price of Bond Ted = 30.77%

c. See the attached excel file for the graph.

d. It tells us that the longer the term of a bond, the greater will be its interest rate risk.

Explanation:

The price of each bond can be calculated using the following excel function:

Bond price = -PV(YTM, NPER, PMT, FV) ........... (1)

Where;

a-1. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill?

YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%

NPER = Number of semiannuals to maturity = 5 * 2 = 10

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Bill = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Bill = -PV(4.1%, 10, 31, 1000)

Inputting =-PV(4.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Bill = $919.29

Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($919.29 - $1,000) / $1,000) * 100 = -8.07%

a-2. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Ted?

YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%

NPER = Number of semiannuals to maturity = 25 * 2 = 50

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Ted = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Ted = -PV(4.1%, 50, 31, 1000)

Inputting =-PV(4.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Ted = $788.81

Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($788.81 - $1,000) / $1,000) * 100 = -21.12%

b-1. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then?

YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%

NPER = Number of semiannuals to maturity = 5 * 2 = 10

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Bill = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Bill = -PV(2.1%, 10, 31, 1000)

Inputting =-PV(2.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Bill = $1,089.36

Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($1,089.36 - $1,000) / $1,000) * 100 = 8.94%

b-2. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Ted be then?

rate = new YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%

NPER = Number of semiannuals to maturity = 25 * 2 = 50

PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31

FV = Face value = Initial price of Bond Ted = $1,000

Substituting all the values into equation (1), we have:

New price of Bond Ted = -PV(2.1%, 50, 31, 1000)

Inputting =-PV(2.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:

New price of Bond Ted = $1,307.73

Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($1,307.73 - $1,000) / $1,000) * 100 = 30.77%

c. Illustrate your answers by graphing bond prices versus YTM.

Note: See the attached excel file for the graph.

d. What does this problem tell you about the interest rate risk of longer-term bonds?

It tells us that the longer the term of a bond, the greater will be its interest rate risk.

Download xlsx
6 0
2 years ago
In Chapter 7 bankruptcy, liquidation, A. all the debtors' debts are discharged. B. the debtor keeps their assets. C. the trustee
qaws [65]
<span>In Chapter 7 bankruptcy, liquidation, the trustee sells off the debtor's assets and pays creditors. A Chapter 7 bankruptcy often turns into a Chapter 13 which is based around selling debt off to pay creditors. Selling off the assets and liquidating them gives them cash on hand to pay off what needs to be paid. </span>
4 0
3 years ago
1. Which one of the following is not considered part
LiRa [457]

The part of a house that is not considered as the exterior finish of a house is the Ceiling of a porch or breezeway.

<h3>What is the exterior finish of a house?</h3>

The exterior finish of a house refers to an outer layer or structure that can be seen physically from the outside and add to the image of the entire house.

A cornice is a horizontal architectural design of a building that is positioned away from the main walls used in directing rainwater from the building walls.

Thus, the exterior finish of the house is:

  • An entry door
  • Cornice
  • Exterior wall coverings

From the given options;

  • The ceiling of a porch or breezeway is usually inside the house.

Therefore, the part of a house that is not considered as the exterior finish of a house is the Ceiling of a porch or breezeway.

Learn more about a house here:

brainly.com/question/1739912

7 0
2 years ago
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