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3 years ago

Suppose a firm’s total revenue is $100 when it sells 10 units, and $110 when it sells 11 units. The firm, therefore, is a(n):

Business

1 answer:

Andru [333]3 years ago

3 0

Answer:

perfect competitor

Explanation:

Given:

Firm's total revenue when 10 units are sold = $100

Firm's total revenue when 11 units are sold = $110

Average Revenue = $\frac{\textup{Total revenue}}{\textup{Total units sold}}$

Average Revenue = $\frac{100}{10}$ = $10

and,

the marginal revenue = $110 - $100 = $10

Since,

the average revenue and the marginal revenue for the firm is equal,

therefore, the is a perfect competitor

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Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement accoun

Dovator [93]

Answer:

$92,8571.7937

Explanation:

The computation of the amount after 40 deposits is shown below:

= (((1 + interest rate)^number of years - 1) ÷ interest rate)× principal

= (((1 + 0.06)^40-1) ÷ 0.06) × $6,000

= $92,8571.7937

We simply applied the above formula and the same is to be considered

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4 years ago

Given the cost formula, y = $7,000 + $1.80x, total cost for an activity level of 4,000 units would be:

zaharov [31]

The total cost for this certain activity level can be calculated by substituting 4000 to the x of the equation given above,
y = 7000 + 1.8(4000)
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Thus, the total cost of the activity level is $14,200.

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3 years ago

One reason to buy a home instead of rent a home is

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A home you can live in it longer than when you rent a home.

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3 years ago

Read 2 more answers

The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean

Illusion [34]

Answer: GNP; GDP

Explanation:

The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.

Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.

This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.

Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.

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3 years ago

Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company woul

ad-work [718]

Answer:

1) 0.8333

2) 16,666

3) 2.33

4) 56.40

5) 2.2

Explanation:

Share Exchange Ratio = Price per share for Target Company / Market price per share for Acquiring Company = $50 / $60 = 0.8333

New shares issued by Acquiring Company = Shares of Target Company x Exchange ratio (20,000 x 0.8333) = 16,666

Total shares outstanding of the combined companies = 60,000 + 16,666 = 76,666

Post-merger EPS of the combined companies = ($150,000 + $30,000)/ 76,666 = $2.35

Pre-merger EPS of Acquiring Company = $150,000 / 60,000 = $2.50

Post-merger share price = $2.35 x 24 (pre-merger P/E = $60.00/$2.50) = $56.40

Purchase price = 50 * 20,000 = 1,000,000

Interest expense = 1,000,000 * 8% = 80,000

Post-merger earnings = 150,000 + 30,000 – 80,000 * (1-0.4) = 132,000

Therefore, Post-merger EPS of the combined companies = 132,000/60,000 = 2.2

6 0

4 years ago