It tells you what one nations currency is worth in another country
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Complete Question:
Refer to Exhibit 23-9. Assume that demand increases from D1 to D2; in the new long run equilibrium, price settles at a level between P1 and P2 This means that the industry in question is a(n) __________-cost industry.
a. Decreasing
b. Increasing
c. Constant
d. Marginal
e. Low
Answer:
b. Increasing
Explanation:
An increasing cost industry is an industry where the cost of producing goods increases, due to the emergence of new industries.
As the entrance of new industries continue to increases, raw materials and supplies become very scarce, this causes the competition between the companies to increase.
An Increasing cost industry is an examples of a perfectively competitive industry. One of the major factors that can cause the emergence on an increasing cost industry is the increase in the demand of goods which results in the increase in production cost.
Examples of Increasing cost industries are industries that produce:
a. Gold
b. Copper
c. Silver
The supply of raw materials required for production by an increasing cost company is going to be available in small quantities and also very scarce therefore we can say the supply of raw materials is finite or limited.
The elastic clause is a section of the constitution of the United States of America that grants Congress the authority and power to pass all laws that are needed to carry out the enumerated list of powers. The elastic clause can be found in article 1, section 8 of the Constitution. This law basically grants congress the power to pass the laws necessary for it to carry out its own functions. <span />
Answer:
The minimum transfer price is $92
Explanation:
Minimum transfer price = Variable cost + Opportunity cost
= $42 + $(92-42)
= $42 + $50
= $92
Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
