Answer:
monopoly firms will operate at a loss because P < AC
Explanation:
A monopoly is when there is only one firm operating in an industry.
A natural monopoly exists either because of high start-up costs or high economies of scale.
A natural monopoly has a decreasing average cost for some output. When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.
Answer: 1.68
Explanation:
From the question, we are informed that a proposed project has fixed costs of $47,000 per year and that the operating cash flow at 11,000 units is $69,000.
Ignoring the effect of taxes, the degree of operating leverage will be:
= 1 + ($47,000/$69,000)
= 1 + 0.68
= 1.68
Answer:
$548
Explanation:
Calculation for the present value
Using this formula
= P / ( 1 + r ) ^ t
Where,
P represent Principal=1,000
r represent rate=12.78%
t represent Time= 5 years
Let plug in the formula
P=$1,000/(1+0.1278)^5
P=$1,000/(1.1278)^5
P=$1,000/1.825
P=$548
Therefore the present value of $1,000 to be received in 5 years is $548 if the discount rate is 12.78%.
Answer:
Tab + windows
Explanation:
I got it right in the 2nd try EDGE2020
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