Based on the marginal cost and the marginal revenue to this monopolistically competitive firm, in the short run the firm should increase the level of output.
<h3>Why should the firm increase output?</h3>
Firms will maximize their profit if they produce at a point where marginal cost equals marginal revenue.
As the marginal revenue is $25 and the marginal cost is $20, the firm should increase output until both these things are the same.
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Answer:
The second year’s depreciation for this equipment using the straight line method is 8,500
Explanation:
Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.
The formula to compute the depreciation under straight lie method is shown below:
= 
= 
= $8,500
The depreciation amount under straight line method should remain same over the estimated useful life
So, the second year’s depreciation for this equipment is $8,500
Amy should reduce hierarchy if she wants to avoid being beaten by competitors.
A reduction of hierarchy will realign the company to achieve its goals faster than operating with a formalized hierarchy. This restructuring or delayering is known as empowerment.
The advantages that Amy will achieve by delayering or reducing hierarchy include:
- Simplifying the organization's management structures
- Reducing its bureaucracy
- Cutting its communication paths
- Speeding up decision-making
- Pushing responsibility down to lower organizational levels (through empowerment).
Thus, Amy should rethink the organizational structure by reducing the hierarchy, making the decision-making process accessible.
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Answer:
D. Spending tax revenues
Explanation:
Fiscal policies are the actions of the executive wing of the government to alter its spending and taxation strategies to achieve macroeconomic objectives. Fiscal policies are the activities of adjusting government spending and taxation in the economy.
The government receives data on the state of the economy from various agencies. The government adjusts its spending and taxes to influence the level of economic activities to achieve steady growth and stable prices.
Answer:
Bond Price = $951.9633746 rounded off to $951.96
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment, annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.
Coupon Payment (C) = 1000 * 10% = $100
Total periods remaining (n) = 3
r or YTM = 12%
Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12] + 1000 / (1+0.12)^3
Bond Price = $951.9633746 rounded off to $951.96
