<span>The question refers to whether that scenario describes a competitive market, and the answer is - no. This scenario that you have presented us with is not an example of a competitive market because there is no free entry. Because firms cannot freely enter this market, this cannot be said to be competitive, because there are no companies to compete if there is only one firm involved. </span>
Answer:
Elasticity coefficient = 0.5
Explanation:
Elasticity coefficient = percentage change in quantity demanded / percentage change in price
percentage change in price if gasoline = 20%
percentage change in quantity demanded = 10%
Elasticity coefficient = percentage change in quantity demanded / percentage change in price
= 10% / 20%
= 1/2
= 0.5
Elasticity coefficient = 0.5
Answer:
-$1,908
Explanation:
Current liabilities:
= Total debt - Long term debt
= $21,750 - $18,100
= $3,650
Retained earnings:
= Net income - Dividend
= $5,500 - $1,925
= $3,575
Increase in assets:
= Total assets × Percentage increase in sales
= $48,900 × 4%
= $1,956
Increase in liabilities:
= Current liabilities × Percentage increase in sales
= $3,650 × 4%
= $146
Increase in retained earnings:
= Retained earnings × (1 + 4%)
= $3,575 × 1.04
= $3,718
Therefore,
External financing need:
= Increase in assets - Increase in liabilities - Increase in retained earnings
= $1,956 - $146 - $3,718
= -$1,908
Answer:
$1,680
Explanation:
during the first 5 years, the monthly payment will = $2,816.18
I prepared an amortization schedule. After the 60th payment, the principal owed = $335,580
the new monthly payment considering that the interest rate fell significantly to 3.5% = $1,680
calculation to determine the monthly payment:
present value of the loan = monthly payment x PVIFA
monthly payment = present value / PVIFA
PVIFA, 0.29167%, 300 periods = 199.7501
monthly payment = $335,580 / 199.7501 = $1,680
