Answer:
The correct answer is letter "B": The price will not increase but firms will increase the quantity supplied to promote the social interest.
Explanation:
Perfectly competitive markets are characterized by having companies offering an undifferentiated product, being price takers because firms posses a small market share which does not allow them to have a major influence in the price, and by free entry and exit of competitors.
Then, <em>if there is a shortage of clean drinking water in a local market that is perfectly competitive, the shortage would not last much since new producers would enter the market to process water so it can be offered purified. As drinking water is a basic good, the number of organizations entering the market is likely to be substantial.</em>
Answer: will increase if the quantity effect outweighs the price effect
Explanation:
A monopolist is an individual or a firm that controls all the market for a certain good or service in the market. A monopolist has so much power and usually doesn't improve their product as there are no alternatives.
An increase in output by monopolist will increase if the quantity effect outweighs the price effect.
Weight to wealth in the tivo stock = w1 = 0.5
Weight to wealth in intel bonds = w2 = 0.5
Tivo stock beta (beta1) = 1.2
Intel bond beta (beta2) = 0.90
Portfolio (beta) = w1beta1 + w2beta2 = 0.5 x 1.2 + 0.5 x 0.9
The answer is 1.05
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In the given transaction Marvin Company has purchased a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the remainder over seven years it means the balance (250000-100000) = 150,000 is a liability for Marvin company.
So there is an Increase in the asset by $250,000 due to purchase of the building and there is a decrease in assets by $100,000 due to the payment of cash. Hence the Net increase in the assets is (250,000-100,000) = $150,000.
And there is an increase in the liabilities by $150,000.
Hence the correct answer is:
d. $150,000 net increase in assets and $150,000 increase in liabilities
