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devlian [24]
3 years ago
9

To maximize its profit, a producer should set a price (and produce that related output) where:A. marginal cost is just less than

or equal to marginal revenue.
B. marginal cost is at its minimum.
C. price is as high as possible.
D. total revenue equals total cost.
E. marginal revenue is zero
Business
1 answer:
marin [14]3 years ago
3 0

Answer:

The correct answer is A.

Explanation:

To maximize the profit you need to set a price where marginal cost equals marginal income. If marginal income is higher than marginal cost, each additional unit will increase income. If the marginal cost is higher than the marginal income, each additional unit will decrease income. Therefore, to maximize profit Cmg=Img.

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Mark the boxes that are TRUE. 1. One of the largest divestitures in American history occurred when the U.S. Government ruled tha
Umnica [9.8K]

Answer:

1. One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T ® Corporation was a monopoly that must be divided so that the telephone market might be more competitive.

<em>TRUE</em>

<em>In 1982, U.S. regulators broke up the AT&T monopoly, requiring AT&T to divest its regional subsidiaries and turning them each into individual companies. From that point AT&T as a result of this breakup, faced competition from new competitors such as MCI and Sprint. </em>

Explanation:

1. One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T ® Corporation was a monopoly that must be divided so that the telephone market might be more competitive.

<em>TRUE</em>

<em>In 1982, U.S. regulators broke up the AT&T monopoly, requiring AT&T to divest its regional subsidiaries and turning them each into individual companies. From that point AT&T as a result of this breakup, faced competition from new competitors such as MCI and Sprint. </em>

2. The Federal Aviation Administration regulates the airlines.

<em>TRUE</em>

<em>The Federal Aviation Administration (FAA) is the regulatory arm of the government of the United States which controls all aspects of civil aviation.</em>

<em />

3. The Federal Newspaper Association regulates the free speech in newspapers.

<em>FALSE</em>

<em>It is the Federal Communications Commission</em>

<em />

4. The Securities and Exchange Commission regulates the stock market.

<em>TRUE</em>

<em>The U.S. Securities and Exchange Commission (SEC) is a government agency responsible for overseeing and regulating investments in shares, and maintain fair and orderly functioning of the securities markets.</em>

5. The Federal Reserve Board regulates the postal system.

<em>FALSE</em>

<em>The Federal Reserve Board governs the Federal Reserve System and the U.S. central bank in charge of making the country's monetary policy.</em>

6. The Interstate Commerce Commission polices monopolistic practices.

<em>FALSE</em>

<em>Interstate Commerce Commission (ICC), was charged with regulating the services of specified carriers engaged in transportation between states. </em>

<em />

7. The Federal Reserve Housing regulates the housing prices in America.

False

That would have been the United States Housing Authority

8 0
3 years ago
You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s
dimulka [17.4K]

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

8 0
3 years ago
The real per capita GDP in country X is 4 times of that in country Y. The annual growth rate in country X is 2.33%, while in cou
tigry1 [53]

Answer:

It will take 30 years for country Y’s GDP to catch up with that of country X

Explanation:

In this question. We are asked to calculate the number of years it will take a certain country Y to catch up with the GDP of a certain country X, given the annual growth rate in both countries.

We calculate the number of years as follows;

Firstly, we assign a variable to the value of the real GDP of country Y

let real

Let the real GDP of the country Y be n. This means that the GDP of country C will be 4 * n = 4n

With a 7% growth rate annual, country Y's Real GDP will be doubled in 70/7 = 10 years and;

With annual growth rate of 2.33% ,country x's Real GDP doubles in 70/2.33 = 30 years.(Approx)

Now in next 30 years x's Real GDP will be = 2x4n = 8n

and Y's Real GDP in next 30 years will be = 2x2x2xn = 8n.

thus , it will take 30 years to country Y to catch up to the level of country x.

7 0
3 years ago
Read 2 more answers
If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,
GrogVix [38]

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

  • inflation rate US = (1 + 0.03)⁵ = 1.159274
  • inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

5 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Firdavs [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
3 years ago
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