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3 years ago

Under which conditions is price elasticity of supply relatively elastic or relatively inelastic?

Business

1 answer:

Ulleksa [173]3 years ago

6 0

Answer:

1. Firms are operating in the short run - relatively inelastic

2. Firms would have a hard time storing their goods - relatively inelastic

3. Firms have a large amount of excess capacity - relatively elastic

4. Firms can easily relocate from one location to another - relatively elastic.

Explanation:

The price elasticity of supply is less in the short run than in the long run. In the short run supplier does not have enough time to adjust the production level so supply is inelastic. The firms facing hard to store their goods then the supply is inelastic. If the firm has spare capacity available then the supply is relatively elastic because supplier can produce more if the demand is greater. The mobility factor also effects elasticity, if firm can easily relocate itself then the supply is elastic.

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Which of the following is NOT one of the recommendations that should be followed when jump starting a car? A) Never lean over th

Gre4nikov [31]

The answer is C I believe

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3 years ago

Read 2 more answers

ABC Insurance retains the first $1 million of each property damage loss and purchases insurance 22) for that part of any propert

Sliva [168]

Answer:

B) excess insurance

Explanation:

Excess insurance is also known as excess waiver insurance and is amount that will be paid in case of an accident that exceeds normal insurance cover. The amount covered by excess insurance is agreed between the beneficiary and the insurance company.

It protects one against excess charges in cases where a car is stolen or damaged.

For example of you hire a car that has standard insurance, and it is involved in an accident. If the damage is above the limit of insurance cover you will have to pay the rental company the excess for the repairs. Excess insurance covers costs that are high, with some covering up to $6,000.

So if ABC purchases insurance for part of property loss that exceeds $1 million, they are purchasing excess insurance to protect themselves from loss.

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3 years ago

Bidder conferences are used to:

Zarrin [17]

Answer:

A. Answer questions about the project prior to submittal of proposals

Explanation:

A bidder conference is a meeting held by a buyer to discuss a possible purchase with multiple potential suppliers.

4 0

3 years ago

Use the information about Company X below to help answer this question:

Harman [31]

Answer:

b. $12.67

Explanation:

The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.

Year 1 dividend=current year dividend*(1+12%)

Year 1 dividend=$60m*(1+12%)=$67.20m

Year 2 dividend=$67.20m*(1+12%)=$75.26m

Year 3 dividend=$75.26m*(1+12%)=$ 84.30m

Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m

Year 5 dividend=$ 94.41m*(1+12%)=$105.74m

the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)

the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m

value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5

value of the company=$956.00 m

value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)

5 0

3 years ago

You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances:Cash and ma

s344n2d4d5 [400]

Answer:

The answer is $668,000

Explanation:

Net working capital = current asset - current liability.

Under current asset, we have Cash and marketable securities($610,000) Accounts receivable($810,000) Inventory($510,000)

And under current liability, we have

Accrued wages and taxes($51,000) Accounts payable($201,000), Notes payable($1,010,000)

Current asset = $610,000+$510,000+$810,000 = $1,930,000

Current liability = $51,000+$201,000+$1,010,000=$1,262,000

Therefore, net working capital =$1,930,000 - $1,262,000

=$668,000

4 0

3 years ago