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3 years ago

The model of competitive markets relies on these three core assumptions:

Business

1 answer:

Vesnalui [34]3 years ago

7 0

Answer:

The three scenarios describe a competitive market.

Explanation:

1) In the competitive market buyers and sellers are price takers, this means that there are many producers and consumers and none of them are able to intervene in price and market. Price is given, ie price is determined by interaction in the market. 2) The products are identical. That is, no company will make a profit due to differentiated products. In perfect competition, companies produce identical products, and the consumer is indifferent to the product characteristics of each company. 3) There is free entry and exit of companies and factors of production, ie there is no cost to enter and exit any sector. This means that factors can migrate from one sector to another without incurring costs, meaning there are no barriers to entry and exit from any sector.

Thus, from items 1 and 2, consumers and buyers are price takers, that is, they cannot influence the price determined by the market. Item 3 is about achieving zero profit or normal long-term profit. This is because the free entry and exit of companies avoids extraordinary profits by encouraging companies to migrate to sectors that earn higher profits in the short term. Thus, in perfect competition, compa

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Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase e

masya89 [10]

Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = $\text{After-Tax Net}$ cash flow $\text{(Taxable income - taxes + depreciation)}$

I = PV of $\text{Net cash flow}$ at the rate $12\%$ = $NCF$ / $(1+WACC\%)^n$

A B C D E F G H I

0 82,500 -82,500 -82,500

1 20% 16500 27000 10500 4200 22800 20357.14

2 32% 26400 27000 600 240 26760 21332.91

3 19% 15675 27000 11325 4530 22470 15993.70

4 12% 9900 27000 17100 6840 20160 12812.04

5 11% 9075 27000 17925 7170 19830 11252.07

6 6% 4950 27000 22050 8820 18180 9210.55

7 0% 0 27000 27000 10800 16200 7328.06

8 0% 0 27000 27000 10800 16200 6542.91

NPV $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

4 0

3 years ago

Nori is writing an essay to analyze an advertisement for a piece of athletic equipment. What elements should he include in order

Anettt [7]

Answer:

2. the advertising techniques used to persuade the viewer. In order to do this, Nori need to determine whether the advertisers using a visual or principle attraction method for this product

4. what tools the advertiser uses to sell the product. This could range from newspaper, billboard, television, or phamplets

5. the purpose of the advertiser's message. Nori need to do this in order to find out the customer segmentation of the product

4 0

3 years ago

Read 2 more answers

Inventory records for Herb's Chemicals revealed the following: March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200 Purchase

amid [387]

Answer:

correct option is A. $5,087

Explanation:

given data

March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200

Purchases amount Sales

Mar. 10 600 gals @ $7.25 4350 Mar. 5 400 gals

Mar. 16 800 gals @ $7.30 5840 Mar. 14 700 gals

Mar. 23 600 gals @ $7.35 4410 Mar. 20 500 gals

Mar. 26 700 gals

total 3000 @7.267 21800

cost of good sold 2300 @ 7.267 16714

balance is = 3000 - 2300 = 700 @ 7.267

ending inventory is $5087

so correct option is A. $5,087

7 0

3 years ago

Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between co

wel

Answer:

3821 irjejjejjwjwjwjdjdjskskskskakakakakskaka

3 0

3 years ago

3) What are the main factors behind economic growth? Write a short essay. Be expansive. Take a broad view of this question. What

viva [34]

Explanation:

It is a level of goods and services provided by the country in a specific period
Certain factors associated with the economic growth are

1. Natural resources: Every country must protect their land forms so that the natural resources like oil or mineral can be obtained adequately and thus it can boost the economy of the country

2. Infrastructure: Creating an successful infrastructure make goods and services faster and thus increasing the economic growth.

3. Higher population: There are both advantages and disadvantages. We have high man power and on the other side there might be huge unemployment too.

Culture is closely associated with the branch of economy because it can turn the country upside down. Because, it is the culture which decides the like and unlike of a particular product.

8 0

3 years ago