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4 years ago

When a monopolist increases the amount of output that it produces and sells, the price of its output

Business

1 answer:

Elden [556K]4 years ago

5 0

Answer:

c. Decreases.

Explanation:

Since the demand curve for a monopolist is like a normal demand curve with a negative slope, when the output increases the price decreases, as otherwise the monopolist would not be able to sell the additional units. This is why monopolists limit their production in order to charge maximum possible prices to earn economic profits.

Hope that helps.

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"The financial leverage multiplier is the ratio of" ________. A. current assets to current liabilities B. total assets to total

Bond [772]

Answer:

D. total assets to common stockholders' equity

Explanation:

The financial leverage multiplier (FLM) is defined as the ratio of the firm’s total assets to the shareholders’ equity.

Analyzing the answer choices provided, the one that better fits the description above is alternative D. total assets to common stockholders' equity

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4 years ago

Nelly's grandparents are on a fixed income. Which of the following is true?

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3 years ago

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Which of the following is responsible for depth of field?

larisa86 [58]

Answer:

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Explanation:

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3 years ago

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Ten percent of your grade for this assignment is based on your explanation of two basic principles of communication:

kifflom [539]

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3 years ago

Cost of Debt KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a co

Ivahew [28]

Answer:

the annual pre-tax cost of debt is 10.56%

Explanation:

the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.

We solve for the rate which makes the coupon and maturity 104

with excel or a financial calculator

PV of the coupon payment

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 5.500 (100 x 11%/2)

time 60 (30 years x 2 payment per year)

rate 0.052787474

$5.5 \times \frac{1-(1+0.0527874736258532)^{-60} }{0.0527874736258532} = PV\\$

PV $99.4338

PV of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 100.00

time 60.00

rate 0.052787474

$\frac{100}{(1 + 0.0527874736258532)^{60} } = PV$

PV 4.57

Adding both we should get 104 which is the amount the bonds is selling:

PV coupon $99.4338 + PV maturity $4.5662 = $104.0000

The rate is generated using goal seek or wiht a financial calculator.

This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:

0.052787474 x 2 = 0.105574947

The cost of debt for the firm is 10.56%

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3 years ago