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wariber [46]
3 years ago
7

Tammy just moved to an area that will soon get cold. She owns some sweaters, but she is not fond of them. She also does not own

a coat at all. She has a yard sale and makes $75. She thinks about her priorities and decides to spend her money on a beautiful new sweater because she values good-looking clothes. What is the flaw in Tammy's reasoning?
Her actions are not consistent with her priorities.
Her needs must be met before her wants.
Her wants must be met before her needs.
Her values are not consistent with her wants.
Business
1 answer:
Natalka [10]3 years ago
3 0
Her needs must be met before her wants.
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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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2 years ago
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Answer:

Answer of each requirement is given seperatly below.

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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)

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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

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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.

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