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White raven [17]
3 years ago
11

The perfectly competitive firm produces that quantity at which a.marginal revenue is greater than marginal cost. b.the largest g

ap exists between price and marginal cost. c.marginal cost equals marginal revenue. d.marginal cost is falling. e.b and d
Business
1 answer:
Katena32 [7]3 years ago
4 0

Answer:

Option (c) is correct.

Explanation:

The perfectly competitive firm produces at a point where the marginal revenue is equal to the marginal cost because it the profit maximizing point for the competitive firms. Under the perfectly competitive market conditions, the price is determined by the two forces: demand and supply of the goods.

The firms under this market condition, faces a perfectly elastic demand curve which implies that the buyers are free to buy any quantity of goods.

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Answer:

c. It may provide only a temporary market advantage.

Explanation:

According to my research, the first mover strategy is a marketing strategy that  offers an advantage by gaining the initial significant occupant of a market segment. This is usually caused by the inquiry of new technological leadership or purchase of early resources, even though this may only provide a temporary market advantage.

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On January 1, 2012, Fei Corp. issued a 3-year, 5% coupon, $100,000 face value bond. The bond was priced at an effective interest
xz_007 [3.2K]

Answer:

c. $7,418

Explanation:

Calculation to determine What was Fei’s Interest Expense on the bond during fiscal year 2012

Using this formula

Interest Expense =Interest payable+Amortization of bonds discount interest expense

Let plug in the morning

Interest Expense=(5%*100,000)+$2,418

Interest Expense=$5,000+$2,418

Interest Expense=$7,418

Therefore Fei’s Interest Expense on the bond during fiscal year 2012 is $7,418

3 0
3 years ago
Assume that a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, and the expected return on
ki77a [65]

Answer:

The risk premium appropriate for this security is 4%.

Explanation:

The returns vary by only half as much as the market index which means that the security half as risky as the market.

The risk-premium for the security should be half of the market risk premium.

Market risk premium is calculated by = Expected return on the market - Risk free rate

Market risk premium = 13% - 5% = 8%

The risk premium on the security would be 8% / 2 = 4%

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Answer:

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