As an Oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to <u>decline</u> significantly.
When firms in an oligopoly market individually chooses production in order to maximize profit, a quantity of output is produced by them which is higher than the level produced by monopoly and lesser than the level produced by competition.
The existence of economies of scale in certain industries can lead to oligopolistic market structures in those industries. This oligopoly market structure refers to a market form in which there are only a few sellers and they sell similar products.
The Oligopoly firm produces at a higher output, and so the costs per unit here decline significantly. Oligopoly firms are also able to take advantage of economies of scale that reduce production costs and prices.
Thus, when the oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to decline significantly.
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Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
Answer:
planning
Explanation:
In this scenario it seems that Amy is demonstrating the planning part of the managerial functions. This part focuses on creating the plans and processes needed in order to be able to meet all of the company goals and objectives. In this scenario, by stating the actions that she thinks would better the company, she is letting everyone know her plan, therefore she is demonstrating the planning function.
Operating cash flow = ($649,000 x .072) + $102,600 = $149,328. In financial accounting, operating cash flow or as called as OCF in which cash flow provided by operations, cash flow from operating activities or as called as CFO or free cash flow from operations or as called as FCFO bring up to the sum of cash a company produces from the revenues it brings in not including costs related with long-term investment on capital items.
Customers are central to the principles of convergence. They should not be viewed as passive viewers of content but active users that play a central role in your narrative.
In order to create experiences that strengthen the customer's relationship with the brand, three powerful forces—media, technology, and creativity—come together through convergence. A customer-centric mindset must be adopted, and the entire organization must become responsive to the customer journey. Strategies must be supported by evidence from actual customer behavior rather than arbitrary gut instinct. It should be determined by that data where, when, and how to serve customers. Consumers must be involved in brand messaging through social platforms and ecosystems. The organization will always need to be modified for convergence. Testing, learning, constructing, and destroying are ongoing processes.
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