If AR is constant, MR is equal to AR. Both are indicated by the same horizontal straight line(a situation of perfect competition)
<h3>What is the marginal revenue curve for a perfectly competitive firm?</h3>
- Marginal revenue for a company with perfect competition is the same as average revenue and pricing.
- This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve.
- The company closes if the price falls below the average variable cost.
Marginal revenue is the change in total revenue when one more unit of a commodity is sold.
MR= change in TR/change in quantity sold
Average revenue refers to revenue per unit of output.
AR=TR/Q
Relationship between AR and MR:
If AR is constant, MR is equal to AR.
Both are indicated by the same horizontal straight line(a situation of perfect competition)
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The transports medical equipment to emerging nations, is conducting a political risk analysis before signing a contract to transport equipment within a South American country for the following reason which is,
b. Devaluation of the country's currency
Explanation:
- In devaluation of the country's currency, the monetary authority formally gets a lower exchange rate out of the national currency in contrast to the foreign currency's reference.
- Company which transports medical equipment to emerging nations, which conducts a political risk analysis before signing a contract to transport equipment within a South American country, findings in the political risk analysis would indicate that the company should NOT sign the contract because of the Devaluation of the country's currency.
- A country devalues its currency can impact on its deficit because of the high demand of cheaper exports.
- Countries uses it devaluation of currencies as to achieve economic policy.
- The weaker currency compare to the rest of the world can really increase exports, reduce trade deficits and also reduce the cost of interest payments.
Answer:
Contingency Theory
Explanation:
Based on the information provided within the question with regards to the situation at hand it can be said that the management theory that Bingaman is advocating is the Contingency Theory. This is a management approach that believes that the way an individual makes management decisions or approaches a problem should be dependent on the specific circumstances of the problem or situation, and should not all be tackled the same way.
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Answer:
$219,084
Explanation:
The cost of the land to be recorded includes the purchase price of the land as well as other cost incurred in the process of making the land available for use.
Any amount received as a result of this purchase in form of rebates and discounts will be deducted from the cost.
Hence the cost of the land
= $196,981 + $18,718 + $3,885 - $500
= $219,084
<span>Intrinsic value of a call option is the difference between underlying stock's price and its strike price, here it is = 85 - 70 = $15
Time value of this call option will be = cost of option - intrinsic value = 16.8 - 15 = $1.8
So, intrinsic value = $15.00 and time value = $1.80</span>