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Andru [333]
3 years ago
6

An import quota or tariff on French wine that raises the prices for wine will probably: Select one: a. hurt domestic wine drinke

rs but help domestic wineries, which will gain from the higher prices. b. hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities. c. hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. d. hurt domestic wineries, which will lose business as a result of the higher prices.
Business
1 answer:
german3 years ago
3 0

Answer:

A) hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.

Explanation:

The basic purpose of import tariffs or quotas is to help or protect domestic producers of similar goods. But taxes always end up hurting consumers.

First of all, the price of French wines will increase due to the tariffs (which are additional taxes) or because of the import quotas that reduce the quantity supplied. That of course will reduce the availability of French wines and consumers will be forced to pay more for them.

On the other hand, domestic wine producer will benefit because competition will decrease. Less competition means that they can sell their own products at higher prices and still be cheaper than fancy imported French wines. Again, consumers lose.

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The underlying assumption of the dividend growth model is that a stock is worth: Group of answer choices
saul85 [17]

Answer:

B

Explanation:

A. the same amount to every investor regardless of their desired rate of return.

B. the present value of the future income which the stock generates.

C. an amount computed as the next annual dividend divided by the market rate of return.

D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.

the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock

The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:

1. The Gordon constant growth dividend model

2. The two-stage dividend growth model

3. The H-model

4. The three-stage dividend growth model

For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =

50 / (1.1) + 50 / (1.1^2) = 86.78

8 0
3 years ago
People's Clinic purchased a special machine for use in its laboratory on January 2, 2016. The machine cost $100,000 and was expe
klemol [59]

Answer:

Depreciation Expense for 2018; $10,528.57  

Explanation:

On January 2, 2016

machine cost = $100,000

Useful life = 10 years

Annual depreciation = ($100,000 - $6000)/10

                                  = $9,400

By early 2018,

Carrying amount of the machine

= $100,000 - 2($9,400)

= $100,000 - $18,800

= $81,200

Useful life is reassessed to 7 years (rather than 8) with a salvage value of $7,500

Annual Depreciation = ($81,200 - $7,500)/7

                                  =  $73,700/7

                                  =  $10,528.57  

Depreciation Expense for 2018; $10,528.57  

6 0
4 years ago
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astraxan [27]

<u>Solution and Explanation:</u>

(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.

(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.

(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit

(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.  

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3 years ago
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Mariulka [41]
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7 0
4 years ago
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Softa [21]

Planning

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6 0
3 years ago
Read 2 more answers
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