The prospect of greater market share and setting themselves apart from the competition is an incentive for firms to innovate and make better products. But no firm possesses a dominant market share in perfect competition. Profit margins are also fixed by demand and supply.
A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.
The market structure is the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold.
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Answer:
$15,761.90
Explanation:
Given that
Amount paid at the end of each year = $1,000
Time period = 50 years
Interest rate = 6% per year
So, the present value of the annuity would be
= Amount paid at the end × PVIFA factor for 50 years at 6% interest rate
= $1,000 × 15.7619
= $15,761.90
Refer to the PVIFA table.
Basically we multiplied the amount with the PVIFA factor.
Answer:
The answer is 4.232%
Explanation:
The formula for determining the price of a bond which can also be used to find Yield-to-Maturity(YTM) is:
PV = PMT/(1+r)^1 + PMT/(1+r)^2 .......PMT/(1+r)^1 PMT + FV/(1+r)^n
We are to calculate Yield-to-Maturity(YTM) which is the rate of return on the bond to an investor.
Using a Financial calculator. Input the following:
N = (18 years - 2years) x 2 = 32
1/Y = ?
PV = 109
PMT = 9.5/2 = 4.75
FV = 100
1/Y = 4.232%
Subsidized direct loan provides interest subsidy meaning department of education pays your interest while.
<h3>What is loan?</h3>
The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans come in many different forms. There are a number of factors that can differentiate the costs associated with them along with their contractual terms. Interest rates have a significant effect on loans and the ultimate cost to the borrower. Loans with higher interest rates have higher monthly payments or take longer to pay off than loans with lower interest rates.
Learn more about loan, refer:
brainly.com/question/22594723
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