<span>If
a competitive firm can sell a ton of steel for $500 a ton and it has an average
variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm
should reduce its output. The reason for the reduction of output is the
marginal cost it will have. The marginal cost exceeds the selling price of the
product which is a bad sign for the company.</span>
Answer:
exhibition for companies in a specific industry to showcase and demonstrate their new products and services. ... Also, an exhibition of businesses offering franchises and/or business opportunity packages for sale.
AFC mean average fixed costs. This is equal to total fixed costs divided by the amount of output. If the output is equal to 1000, then the AFC is
AFC = $250.00 ÷ 1,000
AFC = $ 0.25
I hope I was able to answer your question. Thank you and have a good day.
Answer: See explanation
Explanation:
a. What stock price is expected 1 year from now?
This will be calculated as:
= P0 × (1 + g)
where,
P0 = $40
g = growth rate = 7%
= P0 × (1 + g)
= 40 × (1 + 7%)
= 40 × (1 + 0.07)
= 40 × 1.07
= $42.80
b. What is the required rate of return?
This will be:
= (D1 / P0) + g
where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725
= (D1 / P0) + g
= (1.8725 / 40) + 0.07
= 0.1168
= 11.68%