Answer: B) demand determined.
Explanation:
If the supply of a good is fixed or the product is of a unique kind, the price of the good will be determined by the amount of demand for it.
Normally supply can change based on the quantity demanded which will impact prices but if the supply is definite, this means that the supply curve is inelastic and the only curve that can affect price therefore is the demand curve.
If more people demand the good, it will increase in price and if less people demand it, it will fall in price.
This answer requires that we fill in the blanks. The answers are contained in the bullet to fill the missing places
- shareholder wealth
- larger the NPV
- higher stock price.
- WACC
- accept the project.
- higher positive NPV.
<h3>What is the NPV?</h3>
This is the term that is used to refer to the net present value. This is the value that is calculated as the difference between the cash inflows and out flows for over a time period.
In order to get the NPV we have to make the following calculations for the projects A and B.
We have:
<u>For Project A</u>
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
<u> project B</u>
we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
The value for the project B happens to be greater than that of A hence this is the value that we have to accept
Read more on NPV here:
brainly.com/question/17185385
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Answer:
(a) $7; $205 million
(b) $9; $195 million
(c) $400 million
(d) $390 million
(e) Loss = $10 million
Explanation:
(a) Price paid by consumers when no tariff imposed:
= Marginal cost + Distribution cost
= $6 + $1
= $7
Quantity demanded:
Q = 240 - 5P
= 240 - 5 × $7
= 240 - $35
= $205 million pounds
(b) At imposed tariff of $2 per pound, then the new price paid by consumers:
= Marginal cost + Distribution cost + Tariff
= $6 + $1 + $2
= $9
New quantity demanded:
Q = 240 - 5P
= 240 - 5 × $9
= 240 - $45
= $195 million pounds
(c) Lost consumer surplus:
= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)
= ($2 × $195) + (0.5 × $2 × $10)
= $390 + $10
= $400 million
(d) Tax revenue collected by government:
= Quantity demanded under tariff × tariff
= $195 × $2
= $390 million
(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.
Loss = $400 million - $390 million
= $10 million
Answer:
b. Jim may have been misrepresented in the story by the newspaper agency and the company might face legal consequences.
Explanation:
Jim has the right to take legal action against the company for releasing the story. The investigation had not been completed and all facts had not been established by the company.
Also the newspaper did not contact Jim to get his own side of the story before publishing, that could have revealed pertinent information about the case.
Answer:
The correct answer is A) A market share of over 50% from the combined companies
Explanation:
The Clayton Act of 1914 regulates acquisitions and mergers in the United States. This is the legal source that the Justice Deparment would use to approve or disapprove the merger described in the question. It explicitly forbids mergers that result in over 50% of market share, because it consideres a higher percentage than that (a market share from 50% to 99%) to configurate a monopoly.
The merger in the question would result in a 70% market share, way higher than the legal limit, hence it would be denied by the DOJ.
