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3 years ago

The problem with average-cost pricing regulation is that once it is in place, there is a tendency for the:________

Business

1 answer:

tester [92]3 years ago

5 0

Answer:

a. ATC curve to shift upward

Explanation:

Average cost pricing is a form of pricing that appears as one of the ways in which the government operates a monopoly market. The government, however, may utilize average cost pricing as a tool to oversee prices monopolists may charge.

In other words, this implies that Monopolists always incline to produce less than the optimal amount boosting the prices up.

Hence, the problem with average-cost pricing regulation is that once it is in place, there is a tendency for the: "Average Total Cost curve to shift upward." This can be a result of an increase in output and reduction price

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Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre

AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × $(1+\frac{r}{n})^{nt}$

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × $(1+\frac{r}{2})^{2\times8}$

1.5625 = $(1+\frac{r}{2})^{16}$

$(1+\frac{r}{2})$ = 1.0282

r = 0.05657

pretax cost of debt = 0.05657 × 100% = 5.657%

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I believe the answer is: True

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2 years ago

Give me a 5th grade sentence that has the words prosper and profit

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