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2 years ago

1. For a firm in a perfectly competitive market, the price of the good is always

Business

1 answer:

andreyandreev [35.5K]2 years ago

4 0

Answer:

A). equal to marginal revenue.

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Price = marginal revenue = average revenue

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Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio

Sliva [168]

Answer:

The correct answer is 10.72% ( Approx.).

Explanation:

According to the scenario, the given data are as follows:

Debt ratio = 46.5%

Capital intensity ratio = 2.51 times

Profit margins = 21%

Dividend payout = 38%

Formula to calculate sustainable growth rate ae as follows:

Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)

where, Retention rate =(1 - dividend payout rate)

= (1-0.38) = 0.62

ROE = Profit margin × Total asset turonver × Equity multipler

= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)

= .21 × (1/2.51) × 1/(1-.465)

= .21 × 0.398 × 1.869

= 0.1562

=15.62%

So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)

= 0.096844 / 0.903156

= 0.1072

= 10.72% (approx.)

Hence, the correct answer is 10.72% (approx.).

7 0

3 years ago

What are entrepreneurs?

mezya [45]

Answer:

Entrepreneurs are people who organize/operate their own buisness or buisnesses.

Explanation:

hope this helps lad :)

8 0

3 years ago

Read 2 more answers

Wiley company purchased new equipment for $60,000. wiley paid cash for the equipment. other costs associated with the equipment

Colt1911 [192]

The total cost of equipment that should be recorded is calculated by adding up all the given values in this item. The costs include equipment cost, transportation cost, tax, and installation cost. Adding up all the values,

TC = ($60,000) + ($1,000) + ($3,000) + ($2,500)
TC = $66,500

ANSWER: TC = $66,500

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3 years ago

Gordon and lisa estimate that they will need $1,875,000 in 40 years for their retirement fund. if they can earn 8 percent annual

Helen [10]

The answer would be $9,234

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3 years ago

Use the drop-down menus to complete the statements. inflation is a measure of how prices . disinflation occurred . the inflation

Bingel [31]

Inflation, Disinflation, and Deflation are related economic terms, as inflation measures price increase, Disinflation is inflation at a slower rate, and the inflation rate in 2014 was 1.5%

<h3>What are Inflation, Disinflation, and Deflation?</h3>

Inflation is the goods and services price increase, Disinflation is the same as inflation but at a slower pace, and Deflation is a decrease in the price of goods and services.

Inflation is measured by an increase in prices
Disinflation occurs when inflation occurs at a slower pace in the short run. it occurred between the years 2008 and 2009.
The inflation rate in 2014 was about 1.5% in the United States.
In 2009 there was a decline in inflation.

Therefore, the above option aptly describes inflation, Disinflation, and Deflation.

Learn more about Inflation, Disinflation, and Deflation here:

brainly.com/question/1699650

8 0

2 years ago