<span>Consider this scenario: in response to an increase in the product's price, producers of mp3 players have increased the quantity supplied. this is an example of Law of Supply. </span><span>The </span>law of supply<span> states that the quantity of a good supplied rises as the market price rises, and falls as the price falls. </span>
Answer:
A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
Explanation:
Answer: 2.36 years
Explanation:
Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.
= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)
Add up the cashflows to find the year before payback;
= 6,400 + 7,700
= $14,100
Year before payback = 2
Amount remaining;
= 15,700 - 14,100
= $1,600
Payback period = 2 + (1,600/ 4,500)
= 2.36 years
Answer:
an externality, market failure
Explanation:
The company in this case has a par production because the cost to the seller is the same as the benefit to the buyer. Now the company is dumping chemicals that are affecting people in the community that do not patronise them. The chemicals cause poisoning of wildlife and harms health of nearby residents.
This characterised an externality that is the dumping of chemicals affecting the residents in the community.
It is also a market failure because while the company is not making profit they are also harming the society where they operate.
Answer:
The discount rate is 12.46%
Explanation:
In this question, we use the Capital asset pricing model (CAPM).
The formula and computation of the discount rate is shown below:
= Risk-free rate of return + (Beta × Market risk premium)
= 3.5% + (1.12 × 8%)
= 3.5% + 8.96%
= 12.46%
Since we have to compute the discount rate for the project that involves the manufacturing of furniture, so we have to use the Integral designs beta instead of the Honest Abe because Integral design is a furniture maker
