Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
Answer:
8.46%
Explanation:
Calculation for the the taxable equivalent yield for this investment
Using this formula
Taxable equivalent yield
=Tax-exempt yield / (1 − Your tax rate)
Let plug in the formula
Taxable equivalent yield=0.055 / (1 - 0.35)
Taxable equivalent yield=0.055/0.65
Taxable equivalent yield=0.0846*100
Taxable equivalent yield= 8.46%
Therefore the taxable equivalent yield for this investment is 8.46%
Answer:
6.78%
Explanation:
Data provided in the question:
Total return i.e nominal rate = 15% = 0.15
Real return = 7.7% = 0.077
Now,
Inflation rate = 
- 1
on substituting the respective values, we get
Inflation rate = 
- 1
or
Inflation rate = [ 1.15 ÷ 1.077 ] - 1
or
Inflation rate = 0.0678
or
Inflation rate = 0.0678 × 100% = 6.78%
Answer:
$ 1,592,121.121
Explanation:
Present Value at T=0 is $120,000
N = 30
I = 9%
PMT = $11,680.36
We shall calculate the Future Value without PMT and then with PMT. The difference would be the amount of interest paid.
FV at T = 30 with PMT is -$3,184,242.537
FV at T = 30 without PMT is -$1,592,121.416
The total interest paid on the loan is = $ 1,592,121.121
Answer:
Feedback
Explanation:
Whenever sally looks at an ad in the newspaper about any particular product, she is going to the market to actually review that product and give her personal opinion regarding that. Actually she is not buying the product but just giving a personal feedback, which can be quiet helpful for the product owner.
Thank You. Good Luck.
