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agasfer [191]
3 years ago
5

Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the mark

et demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant?
a. $50.
b. $45.
c. Lower than $50 but exact value cannot be known without more information.
d. Larger than $45 but exact value cannot be known without more information.
Business
1 answer:
Serhud [2]3 years ago
6 0

Answer:

a. $50.

Explanation:

Since the cost conditions remain the same and the market in question is a perfectly competitive one, when the market returns to a long-run equilibrium, the equilibrium price gravitates towards the previous equilibrium price in which economic profit was zero, which is $50, regardless of some firms leaving the industry or not. Note that this behavior is only observed because this is a perfectly competitive market.

Therefore, the answer is alternative a. $50.

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sammy [17]
Generally, prices are inflated when there are fewer choices.  
6 0
3 years ago
Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $
mote1985 [20]

Answer: $28940

Explanation:

Their QBI deduction for the year goes thus:

Jason's QBI amount will be:

= $173000 × 20%

= $173000 × 0.2

= $34600

Paula's QBI amount will be:

= $28,300× 20%

= ($5660)

Therefore, their combined qualified business income will be:

= $34600 - $5660

= $28940

The overall limitation which is based on th modified taxable income will be:

= $247000 × 20%

= $49400

Since $28940 is lesser than $49400, their QBI deduction for the year is $28940

7 0
3 years ago
What is the expected rate of return on a bond that pays a coupon rate of 9% paid semi - annually, has a par value of $1,000, mat
spayn [35]

Answer:

b. 7.28%

Explanation:

This question is asking for the yield to maturity(YTM) of the bond. You can solve this using a financial calculator with the inputs below. Additionally, adjust the coupon payment(PMT) and time to maturity(N) to semiannual basis.

Time to maturity; N = 5*2 = 10

Face value; FV = 1000

Price of bond; PV = -1071

Semiannual coupon payment; PMT = (9%/2) *1000 = 45

then compute semiannual interest rate; CPT I/Y = 3.64%

Next, convert the semiannual rate to annual rate(YTM) = 3.64% *2

YTM = 7.28%

8 0
3 years ago
Maris Bothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given below, and
vaieri [72.5K]

Answer:

I have prepared the cash disbursement schedule as requested,find it in the attached excel template.

Explanation:

Kindly note that data for other months whose cash disbursements are not required such February ,March and July had impact on the schedule one way or other,hence they are shown in the computation.

In addition, I have color blue to lay emphasis on the three months requested for.

Download xlsx
3 0
3 years ago
Economics helps managers because Group of answer choices it helps them focus on the most important issues. it lets them ignore d
murzikaleks [220]

Answer:

it helps them focus on the most important issues

Explanation:

Economics helps the managers with respect to direct, non-direct cost and their benefits

So as per the given situation it would help in focused on the most significant issues

Thus, the first option is correct

And the rest of the options are wrong

So  the same is to be considered and relevant

5 0
3 years ago
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