Answer:
economic profit = $2000
Explanation:
given data
currently maximizes profit = 400 units
marginal cost = $25
average total cost = $20
to find out
earning economic profit
solution
first we get here Total revenues that is express as
Total revenues = currently maximizes profit × marginal cost
Total revenues = 400 × $25
Total revenues = $10000
and Total cost will be
Total cost = currently maximizes profit × average cost
Total cost = 400 × $20
Total cost = $8000
so economic profit will be
economic profit = Total revenues - Total cost
economic profit = $10,000 - $8,000
economic profit = $2000
Answer:
We employ the fact that Pprofit Maximizing Price = Marginal cost * (ed/ed + 1)
Price = $9 * (-3 / (-3 + 1))
Price = $9 * (-3/-2)
Price = $9 * 1.5
Price = $13.5
As we can see that the profit maximizing price is 13.5. Whereas, the current price of $15 which is not profit maximizing. So the firm should reduce the price to 13.5 per unit so as to be maximizing profit.
Answer:
loan markets, bond markets, and stock markets
Explanation:
If we want to buy and sell financial assets, be it money, bonds or shares, for example, it is necessary that there are so-called financial markets. We can distinguish 3 different types of financial markets, the difference lies in the type of assets that are traded in each of them
<u>Capital markets
</u>
In this type of market, stocks, bonds and bonds are traded. If we focus on the national level, we can distinguish several capital markets:
The stock market
Second markets for medium-sized companies
The AIAF private fixed income market
The public debt market (state, autonomous communities, municipalities…)
<u>Currency market </u>
In it instruments are bought and sold in different currencies. The most notable corresponds to the purchase and sale of spot and forward currencies
<u>
Money markets or loan markets</u>
In these markets, short-term financial assets are traded, these can be interbank deposits, company notes and treasury bills. These types of markets are also called money markets.
Answer:
a) $15,347
b) Time period
Explanation:
Initial investment = $100,000
Tax payable = ( 135,000 - 100,000 ) * 15%
= 35,000 * 0.15 = $5250
Amount receivable after tax = $135,000 - $5250 = $129,570
n = 3 years
<u>a) Using a 4% discount rate calculate NPV </u>
NPV = 129570 / ( 1 + 0.04 )^3 - Initial investment
= 129570 / ( 1.04 )^3 - 100,000
≈ $15,347
b) The two basic tax planning variables that increases the value of Vern's investment
