<span>When buyers purchase stock at a certain price, and it falls, and then rises back up to its original purchased price, this is called the weak- form EMH. The weak form EMH states that market and securities are random in nature and are not influenced by past events in stock levels.</span>
Answer: The correct answer is "c. marginal revenue will be positive but declining.".
Explanation: If a pure monopolist is operating in a range of output where demand is elastic: marginal revenue will be positive but declining.
To the extent that the monopolist's demand has a negative slope, the marginal income is always below it. And this is so because to sell more the monopolist has to lower the price, and this reduction in the price affects all the units that will sell.
Answer:
Financial advantage to the company will be $40000
So option (a) will be the correct option
Explanation:
We have given that current sales value = $40000
These calculators are upgraded at a total cost of $10000
They can be sold for a total of $160000
Incremental sales revenues from upgradng the calculators=($160,000-$100,000)=$60,000.
Hence financial advantage to the company would be =($60,000-$40,000)
So option (a) will be the correct option
Answer:
Conservatism in Accounting refers to the policy of being more pessimistic than optimistic. This policy believes that future losses should be anticipated over future gains as future losses are more damaging and probable. It is essentially 'Playing Safe' Accounting. This leads to Income and Assets being understated and Expenses and Liabilities being overstated.
Profit Margins.
As the policy allows for the anticipation and recognition of expenses more than gains, Profit margins will be lower in this type of accounting as Revenue will be less but Expenses will be more.
Debt-to-Equity Ratios
Debt to Equity ratios will be higher because this policy calls for a speedier recognition of Liabilities as well. With the formula for Debt to Equity being Debt over Equity, a larger recognition of debt will mean this equation will yield higher figures. Also a component of Equity is Retained Earnings which comes from Net income and as already stated, this will be less under this policy thus decreasing the denominator of this equation as well.
Returns on Equity.
Return on Equity is calculated by dividing the Net Income by Equity. This figure will be smaller but not by much because this policy as already shown will reduce the both the Net income and the Equity but the Net Income will likely suffer a greater hit than Equity.