Answer:
Theoretical
Explanation:
Perfect competition is a theoretical market structure due to the assumptions required for it to exist: perfect information for consumers and producers, as well as the theoretical maximum number of firms in a market which is a number that never empirically exists.
Answer:
C. Cost-plus
Explanation:
Cost-plus pricing approach is an approach in which the selling price is determined by adding a specific amount markup to the product cost of production or unit cost. It is also called MARKUP pricing. It involves adding a markup to the cost of goods and services to arrive at a selling price.
In this case, a markup of $1.50 was added to the cost of producing the product $3.50, to have a selling price of $5.
Answer:
2.5%
Explanation:
Please follow the below mentioned steps in order to calculate a bond's current yield.
Step 1: Calculate annual bond payment (par value × coupon rate).
Step 2: Divide result from step 1 with 2 in order to convert it into semi-annual terms.
Step 3: Then divide the result from step 2 upon current market price and convert into a percentage.
Solution from step 1 to 3:
- Annual bond payment = $1000 × 6%
<em>ABP = $60</em>
- Semi-annual bond payment = $60 ÷ 2
<em>SABP = $30</em>
- Bond's current yield = $30 ÷ $1200 × 100
<em>BCY = 2.5%</em>
<span>0.75
The midpoint method is to calculate the percentage as the change in value divided by the average (or midpoint) of the new and old values. So the price of the sandwich changed from $5 to $7. Using the midpoint formula, you get
(7-5)/((7+5)/2) = 2/(12/2) = 2/6 = 0.3333 = +33.3%
The change in sandwiches due to the change in price is
(90-70)/((90+70)/2) = 20/(160/2) = 20/80 = 0.25 = +25%
The elasticity of supply will be the percentage change in demand divided by the percentage change in price. So
25/33.3 = 0.75
So the coefficient of elasticity is 0.75</span>
