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natali 33 [55]
3 years ago
7

A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in it

s relevant market. Instructions: Enter your responses rounded to the nearest two decimal places. a. What price does this firm charge its customers
Business
1 answer:
MrRissso [65]3 years ago
7 0

Answer:

$116.28

Explanation:

This can be calculated as follows:

Mark up = [1 ÷ (1 - Lerner index)]

Price = Mark-up × Marginal cost

        = [1 ÷ (1 - 0.57)] × $50

Price = [1 ÷ 0.43] × $50 = $116.28  

Therefore, the price this firm will charge its customers is $116.28.

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Consider relative purchasing power parity (PPP) and remember the consumer price index (CPI) provides the price level in a countr
pychu [463]

Answer:

0.7156 USD/CAD

Explanation:

Relationship between relative PPP and inflation rates can be expressed as given below:

S(1)/S(0) = (1+I(y)) / (1+I(x))................(1)

==> S(0) = spot exchange rate at the beginning of the time period

==> S(1)  = spot exchange rate at the end of the time period

==> I(y) = expected inflation rate for country y, which is foreign country

==> I(x) = expected inflation rate for country x, which is domestic country.

Here, assumes that the US is a foreign country and Canada is domestic country

I(y) = (200/165) - 1 = 21.21%

I(x) = (220/170) - 1 = 29.41%

On putting the values of I(x) and I(y) in the first equation, we get:

S(1)/0.764 = (1+0.2121) / (1+0.2941)

S(1)/0.764 = 0.9366354996

S(1) = 0.764*0.936635

S(1) = 0.7156 USD/CAD

If relative PPP holds, the spot exchange rate in 2015 will be 0.7156 USD/CAD

4 0
2 years ago
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $312,000, which giv
Oksi-84 [34.3K]

Answer:

how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield

2017: $54,000

2018: $69,000

total $123,000

Explanation:

the journal entries used to record the investment in Sheffield Inc. are:

January 1, 2017

Dr Investment in Sheffield Inc. 312,000

    Cr Cash 312,000

the adjustments entries necessary for 2017 are:

December 31, 2017, dividends are distributed

Dr Cash 21,000 (= $70,000 x 30%)

    Cr Investment in Sheffield Inc. 21,000

December 31, 2017, net income is reported

Dr Investment in Sheffield Inc. 54,000 (= $180,000 x 30%)

    Cr Revenue from investment in Sheffield Inc. 54,000

the adjustments entries necessary for 2018 are:

December 31, 2018, dividends are distributed

Dr Cash 24,000 (= $80,000 x 30%)

    Cr Investment in Sheffield Inc. 24,000

December 31, 2018, net income is reported

Dr Investment in Sheffield Inc. 69,000 (= $230,000 x 30%)

    Cr Revenue from investment in Sheffield Inc. 69,000

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3 years ago
Which of the following real estate investments involves purchasing real estate and selling it for profit within a short period o
coldgirl [10]

Answer:

b

Explanation:

when you flip you buy at a low price, fix it up then sell at a higher price for profit. usually in less than 6 months

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The more time the higher the interest rate
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