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masya89 [10]
3 years ago
13

Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning positive econo

mic profits. In the long run, as adjustments occur in the industry, we can expect the market price of ball bearings to a. increase and individual firms' profits to decreaseb. increase and individual firms' profits to increasec. decrease individual firms' profits to increased. decrease and individual firms' profits to decrease
Business
1 answer:
AleksandrR [38]3 years ago
3 0

Answer: Given, the ball bearing market is purely competitive. Also at the current stage the firms in this market are earning positive economic profits.

Therefore , in the long run as adjustments occur in the industry, we can expect the market price of ball bearings to<em><u> </u></em><u><em>decrease and individual firms' profits to decrease.</em></u>

This will take place as new firms will enter the market once they analyze that the existing firms are earning positive economic profits. Thus this will lead to decrease in price of ball bearing and further will lead to decrease in profit os a firm.

<u><em></em></u>

<u><em>Therefore, the correct option is (d)</em></u>

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Evidence seems to support the view that studying public information to identify mispriced stocks is: Select one: a. effective as
uranmaximum [27]

Answer:

Correct Answer:

c. ineffective.

Explanation:

In stock market, there are so many firms upon whose stocks are being traded on by various investors. Most of these stocks could be legit while others could be fraud through price fixing or mispricing. <em>Evidence carried out has shown that, it is highly ineffective studying public information in-order to identify mispriced stocks.</em>

6 0
3 years ago
Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the
Wittaler [7]

Answer:

The depreciation charge in 2021 is $ 164,000.00  

Explanation:

Annual depreciation charge=cost-salvage value/useful life

cost is $610,000

salvage value is $61,000

useful life is 9 years

Annual depreciation charge=($610,000-$61,000)/9=$61000

The depreciation of charge of $61000   is applicable to years 2018 ,2019 and 2020 respectively.

The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.

revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=

$164,000.00  

5 0
3 years ago
You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.50 = €1.00 and the dolla
Verdich [7]

Answer:

The correct answer is (B) Buy euro at $1.50/€, buy £ at €1.25/£, sell £ at $2/£

Explanation:

The dollar- euro exchange rate is quoted as $1.50 = €1.00

the dollar-pound exchange rate is quoted at $2.00 = £1.00

To calculate the actual cross rate we use; S(euro divided by pounds) =  S(dollar/pounds) ÷ S(dollar/euro).

Using symbols to denote this, we have S(€/£) = S($/£) / S($/€)

S(€/£) = S(2/1) ÷ S(1.50/1)

= (2 / 1.5)

= €1.33.

Consequently, from this result we now know that the euro is undervalued with respect to pounds under the cross rate being offered by the bank. This implies that you should first buy the euro, convert to pounds, and eventually convert back to dollars, this would enable you make money as an investor.

3 0
3 years ago
Read 2 more answers
The capital allocation line can be described as the:.
juin [17]

Answer:

What Is the Capital Allocation Line (CAL)? The capital allocation line (CAL), also known as the capital market link (CML), is a line created on a graph of all possible combinations of risk-free and risky assets. The graph displays the return investors might possibly earn by assuming a certain level of risk with their investment.

Explanation:

3 0
2 years ago
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, t
Anvisha [2.4K]

Answer:

Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.

Explanation:

The given problem seems to be incomplete. Find the attachment of the complete question below.

Given:

Direct material,

= $8.70  

Direct labor,

= 24.70  

Overhead,

= 43.50

Now,

If the offer is accepted, the cost per unit will be:

= 44.45 + (43.50\times 70 \ percentage)

= 44.45 + 30.45

= 74.90 ($)

Thus the above is the correct answer.

6 0
2 years ago
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