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anyanavicka [17]
2 years ago
5

Which of the following is typically the case for companies that operate in product markets where there is relatively little comp

etition from other companies?
A) lower wages and lower profits
B) lower wages and higher profits
C) higher wages and higher profits
D) higher wages and lower profits
Business
1 answer:
Igoryamba2 years ago
6 0

Answer:

Which of the following is typically the case for companies that operate in product markets where there is relatively little competition from other companies?

C) higher wages and higher profits

Explanation:

A situation where different organizations are striving to sell the same product is known as competitive markets. When the number of companies selling the same product is small, then we can say that the market has little competition from other companies. A market that has little to no competition has the following qualities;

1. Reduced efficiency

In a market where companies operating in a market have little competition, the efficiency in terms of processing time, and overall quality of finished products is very low since the demand for products is guaranteed whether the product is of high quality or not. The customers have no other choice but to buy from them.

2. Higher profits

In markets that there is little competition, the companies are always few. This means that the market share per company is relatively bigger than other markets. Bigger market shares translates to increases sales, thus higher profit margins.

3. Higher wages

Companies that have higher profits as a result of bigger market shares tend to pay their employees higher wages since the available disposable income is high.

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The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo
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Answer: 6.51%

Explanation:

To get the interest rate at which the deal will be fair

Annual payment per year/ cost × 100

Perpetuity = D/r

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r = 0.06512

r = 0.06512 × 100

r = 6.512%

Where D is the dividend

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3 0
3 years ago
Tanner-UNF Corporation acquired as a long-term investment $240million of 6% bonds, dated July 1, on July 1, 2018. The marketinte
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Answer:

Journal Entry

01 July Debit Investment $240 million Credit Bank $200 million Credit Discount on investment $40 million

31 Dec Debit Bank $7,2 Million Debit Discount on Bond $0.8 million Credit Interest Income $8 million

Debit Fair Value loss on investment $30 million Credit Investment $30 million

Explanation:

Interest is received semiannually

6%/2 = 3%

interest = $240 million * 3% =7,200,000

8%/2 = 4%

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Fair value loss = 240 million - 210 million

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8 0
2 years ago
Sand, Inc. has outstanding $5,000,000, 10%, 20-year bonds. The bonds are callable at 104 on any interest date. The bonds were is
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Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.

Explanation:

The bonds were issued at Par. This means they were issued at 100 of par.

The bonds are now trading at 104 of par.

If Sand Inc calls the bonds then they will make a profit (loss) of,

= 5,000,000 * 104/100

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Therefore their Profit (loss) will be the bond at par minus the Calling price

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= -$200,000

That means they make a loss of $200,000 in the year the bonds are called.

If you need any clarification do react or comment.

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3 years ago
John has just paid off the full balance of his credit card. What happens to the
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Answer:

I think the answer is B. If It's correct please give the brainliest award.

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3 years ago
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