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lesya [120]
3 years ago
8

Goods X and Y are perfect substitutes. When the market price of good X is​ $5/unit, firm F produces 500 units of X. When the pri

ce of Y​ rises, 100 consumers of Y shift to the consumption of good X. This causes industry analysts to think that firm F will increase quantity supplied of X to match this increased demand. This conclusion is flawed because___________.
Business
1 answer:
goldenfox [79]3 years ago
3 0

Answer:

According to this situation, we assume that firm F is the only producer of product X.

Explanation:

A perfect replacement is a condition in which two items are considered equal. Great replacements are goods and you can't build a brand whereby consumers like the commodity.

Except for a market price, optimal substitution suppliers must have no impact on the quality.

  • Therefore, in this situation product Y's price rises, so people shift for product X.
  • In results, firm F had to increase his supply which shows that firm F is the only producer of product X in the industry.

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The store hours can be different for each day of the week.<br> True<br> False
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6 0
3 years ago
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
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The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

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Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

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4 0
3 years ago
A firm has an opportunity to invest $95,000 today that will yield $109,250 in one year. If interest rates are 4%, what is the ne
Goryan [66]

Answer:

The net present value (NPV) of this investment is C) $10,048

Explanation:

Net present value (NPV) is the value of the future cash flows over the entire life of an investment discounted to the present.

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NPV = $109,250/(1+4%) - $95,000 = $10,048

​

3 0
3 years ago
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