Answer:
The correct answer is option e.
Explanation:
In a perfectly competitive market, there are no limitations on the entry and exit of firms. If the existing firms have positive economic profits, this attracts other potential firms to join the market. In case of losses the firms incurring losses exit the market.
If Dirk’s Doughnuts is operating in a perfectly competitive market and is incurring economic losses, firms having losses will exit the market.
This will cause the market supply to decrease. As the supply curve shifts to the left, the price of the product will increase. This will cause profits to increase. The firms will operate at zero economic profits.
Answer:
a. decrease of $18,000
Explanation:
The calculation of overall effect on the company's monthly net operating income is shown below:-
<u>Particulars Current Proposed
</u>
Sales $800,000 $837,000
($200 × 4,000) (200 - 14) × (4,000 + 500)
Variable
expenses $160,000 $180,000
(40 × 4,000) (40 × (4,000 + 500))
Contribution
margin $640,000 $657,000
Fixed
expenses $531,000 $566,000
($531,000 + 350,00)
Net operating
income $109,000 $91,000
Decrease in net operating income is
= $109,000 - $91000
= $18,000
The dividend will be $4.015
<u>Explanation:</u>
The given data is: Initial dividend given is = $3 and growth rate given is = 6%
the following formula is used in order to calculate the dividend
dividend at time 5 = d0 multiply with (1+growth rate) power 5
= $3.00 multiply with (1+0.06) power 5
=>$3.00 multiply (1.33822558)
=>$4.015 (rounded to two decimals).
<u>Note :</u> The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.
Answer:
<u> selling price at year 3:</u> $ 188.89
<u>at constant dollar year 3:</u> $ 167.94
Explanation:
selling price x accumualte raises:
selling price: 188,892
now, to calculate the constante dollar we discount for inflation:
constant dollar selling price: 167,9398271
