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kiruha [24]
3 years ago
10

Suppose a ten firm industry has total sales of​ $35 million per year. The largest firm have sales of​ $10 million, the third lar

gest firm has sales of​ $4 million, and the fourth largest firm has sales of​ $2 million. If fifth through tenth largest firms combined have annual sales of​ $12 million, the fourfirm concentration ratio for this industry is
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer:

0.66

Explanation:

the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.

The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million

concentration ratio of firm 1 = $10 million / $35 million = 0.29

concentration ratio of firm 2  = $7 million / $35 million = 0.2

concentration ratio of firm 3 = $4 million / $35 million = 0.11

concentration ratio of firm 4 = $2 million / $35 million = 0.06

Adding the ratios together = 0.66

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Which is the best option for people who need the items immediately but cannot pay cash now?
professor190 [17]
<h2>Answer</h2>

Buy on Credit

<h3>Explanation</h3>

When in a liquidity problem and items have to be bought, buying on credit seems to be the best option. Buying on credit allows immediate ownership of required items whereas the money can be paid later as per the credit policy and terms. This permits the consumer to take the advantage of item ownership with delayed payment hence double advantage.

7 0
3 years ago
Read 2 more answers
Pharoah Corporation provides its officers with bonuses based on net income. For 2017, the bonuses total $384,900 and are paid on
Keith_Richards [23]

Answer: Pharaohs journal $

Date

December 31, 2017

StaffBonusexpensesDr384,900

Accruede liability Cr384,900

Narration. Staff bonus due as at date.

February 15,2018

Accrued liability Dr 384, 900

Bank Cr. 384,900

Narration. Payment of staff bonus due

Explanation:

In line with the acrual concept of recognising expenses at the period they are due for payment. The staff bonus will be recognized as an expense to the income statement in 2017 and accrued as liability in the balance sheet if it's not paid.

The payment in 2018 will be a debit to the liability account and credit to the cash or bank account.

5 0
3 years ago
A 30-year maturity bond making annual coupon payments with a coupon rate of 8.5% has duration of 12.88 years and convexity of 23
marin [14]

Answer:

a. Predicted Price = $1815.52

b. Predicted Price = $1,834.64

c. Predicted Price = $1425.4

Explanation:

The actual price of the bond as a function of yield to maturity is:

Yield to maturity --- Price

7% $1,620.45

8% $1,450.31

9% $1,308.21

a.

Using the Duration Rule, assuming yield to maturity falls to 6%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 6% - 7% = -1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * -0.01 * 1,620.45

Predicted Change = 195.0597757009345

Predicted Change = $195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 + $195.06

= $1815.52

b.

Using Duration-with-Convexity Rule, assuming yield to maturity falls to 6%

Predicted price change

= [(-12.88/(1 + 0.07)) * (-0.01) + (½ * 235.95 * (-0.01²))] * 1,620.45

= 214.1770345759345

= $214.18 ------ Approximated

Therefore the new Predicted Price

= $1,620.46 + $214.18

= $1,834.64

c.

Using the Duration Rule, assuming yield to maturity rise to 8%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 8% - 7% = 1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * 0.01 * 1,620.45

Predicted Change = -195.0597757009345

Predicted Change = -$195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 - $195.06

= $1425.4

4 0
3 years ago
In a small, closed economy, national income (GDP) is $750.00 million for the current year. Individuals have spent $300.00 millio
andrew-mc [135]

Answer:

1. $50 million

2. $50 million

3. In a closed economy, national savings equals investment

Explanation:

For a closed economy, the formula for calculating GDP = C + I + G

Where C - Consumption

I - investment

G - Government Spending

To find investment ,

750 = 300 + I + 400

I = $ 50 million

National savings = private saving + Government saving

Private saving = Y − T − C

750 - 300 - 250 = $200 million

Public savings = T - G

250 - 400 = $-150 million

National savings = $200 - $ 150 million = $ 50 million

Nb - All numerical values are in $ millions

6 0
3 years ago
Which of the following best describes a subsidy​? A. Banks make​ low-interest loans to farmers. B. The government puts a tax of​
diamong [38]

Answer:

C. The government pays farmers​ $100 per ton of wheat produced.

Explanation:

Subsidy is grant/ financial aid given by government to producers of a commodity, to enable its availability in markets at a lower price.

Government paying farmers $100 tone per wheat produced is a subsidy as : It is a financial assistance given by government to reduce wheat's price in markets.

Bank's low interest rate to farmers is just credit ease policy ; Govt putting a tax on wheat imports is opposite of subsidy ; Farmer paying govt $100 per unit wheat is also a form of tax (opposite to subsidy).

3 0
3 years ago
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