<h2>Type of business for Juanita </h2>
The type of business best for Juanita to start as a sole proprietorship. This type of business is to purchase or rent the required equipment for the business. For becoming a sole proprietorship it also needs to set up some statements registering that Juanita is starting a business.
She also requires to obtain a consent or license from the local government regarding the business she is willing to start. There are many advantages Juanita would have when starting her own set up which may include being her own boss, retention on the company's entire profit and no special taxes to be paid.
Answer:
$56.19
Explanation:
Because Hot Wings' stock only pay dividend in next four years, the stock intrinsic value is sum of these four discounted dividends. Let formulate the calculation as below:
Hot Wings' stock intrinsic value = Dividend in year 1/(1 + Required rate of return) + Dividend in year 2/(1 + Required rate of return)^2 + Dividend in year 3/(1 + Required rate of return)^3 + Dividend in year 4/(1 + Required rate of return)^4
= (10.25 + 8.25)/(1 + 12%) + (10.25 + 8.25)/(1 + 12%)^2 + (10.25 + 8.25)/(1 + 12%)^3 + (10.25 + 8.25)/(1 + 12%)^4 = $56.19
Answer:
- Under Single Price Monopoly, absolute surplus is not maximized.
- The profit-maximizing efficiency in Perfect Price Discrimination is correlated with no extra weight loss
- Barefeet generates quantity less than the productive quantity of boots in single-price Monopoly.
Explanation:
A single-price monopoly is a corporation, who must sell every unit of its production to all its consumers for the same rate. so there is no way to maximize surplus.
A price-discriminating monopoly is a corporation able to sell various units of a product or service at various price points. Therefore, by adjusting their prices they have opportunities to increase their income.
Answer:
e. reduce their cost of production.
Explanation:
As we know mostly, the production processes of the well-known and big companies in USA held in developing countries. Because, the point is about labor cost. The wage rate in USA is more than in developing countries. Then, it will decrease the total cost of the production. Following this, these companies can decrease prices for substitution effect, or even if increase to get more profit. This process is called job outsourcing. The job outsourcing has negative effect on USA employment market. However, this is fact that the persons who are living under lower life standards will have willingness to work and these people live in Asian, African and Latin American countries.
The rents of $5,000 that Diego currently receives from the local cattle rancher are the implicit costs of this expansion.
<h3>What is an implicit cost?</h3>
An implicit cost can e described as the opportunity cost that a company must forgo in order to use a factor of production that it already owns and hence does not have to pay rent for it.
In this case, the implicit costs are the $5,000 rents Diego currently receives from the local cattle rancher
Implicit cost is the polar opposite of an explicit cost which is paid directly such as the $2 million Diego wants to build a warehouse and office building.
Learn more about implicit and explicit costs here: brainly.com/question/14177709.
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