Answer:
O the perceived demand and marginal revenue curves for each firm will shift to the left.
Explanation:
Monopolistically competitive industry is an industry that has many firms that produce similar but differentiated products. The products are differentiated through branding.
As more firms enter the industry, both the perceived demand and marginal revenue curves for each firm industry will shift to the left. This is because, new firms have made available more substitutes to existing products making the demand for existing products to reduce. As the demand reduces, demand curve shift to the left, and this also makes marginal revenue to shift to the left.
Answer:
The value of disposable income is $4,207
Explanation:
Dispossable income refers to the addition of income of an individual minus his taxes.
Therefore, the value of the value of disposable income can be calculated as follows:
Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207
Therefore, the value of disposable income is $4,207.
Answer:
A. True
Explanation:
In the starting of the twentieth century, the only stock in which an individual invest is the stocks and the bonds but today there is a lot of different type of investment choices who provides the better return. Accprding to the demand of the investor there are various options available for invest
Hence, the given statement is true
In a way both can be correct but if seen in public then It is True.
Answer;
$ 70.07
Explanation:
The price of the stock when the dividends level off at a constant growth rate, we then find the PV of the future stock price, including the PV of all dividends during the super normal growth period. The stock start it constant growth in Year 4, so that we can be able to find the price of the stock in Year 3, which is the year before the constant dividend growth begins as:
P3= D3(1 + g) / (R− g) = D0(1 + g1)3(1 + g2) / (R− g)
P3= $3.40(1.24)3(1.06) / (.14 − .06)
P3= $85.89
Therefore the price of the stock today is the PV of the first three dividends, we then add it with the PV of the Year 3 stock price.
Hence the price of the stock today will be:
P0= $3.40(1.24) / 1.14 + $3.40(1.24)2/ 1.142+ $3.40(1.24)3/ 1.143+ $85.89 / 1.143
P0= $70.07
The current shape price is $70.07
