<span>Termination clauses always make a contract invalid for lack of consideration.</span>
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Answer:
The correct answer is option c.
Explanation:
Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.
These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.
The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.
So, the correct answer here will be option c.
Answer:
19%
Overvalued
Explanation:
Computation for the return the firm should earn
Using this formula
The firm's required return=Risk-free rate+Beta×( Expected return-Risk-free rate)
Let plug in the formula
The firm's required return = 4% + 1.5 x (14% - 4%)
The firm's required return =4%+1.5×10%
The firm's required return =0.19*100
The firm's required return =19%
Based on the above calculation the firm's required return is 19% in which the manager believes a 16% return will be achieved which means that manager is saying the firm is OVERVALUED relative to their own estimate.
