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Scilla [17]
2 years ago
10

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes

:
Business
1 answer:
Viefleur [7K]2 years ago
5 0

Answer:

C) the industry would more closely approximate pure competition

Explanation:

A monopolistically competitive industry is one with different firms selling similar products that are slightly differentiated. It is very easy for firms to enter into industries that are monopolistically competitive. They also have the autonomy to increase their prices.

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes they would then resemble a pure competition because they would all be selling identical products which would result in little or no competition.

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Banks can create an unlimited amount of money. True or false, and why?
Eduardwww [97]
Could be true. Banks use the stored money to invest, and if they make the right investments, theoretically they can have excess in money, investing more with the excess, and this keeps happening.
4 0
3 years ago
HELPPP
ZanzabumX [31]

Answer: self-serve food ordering

Explanation:

<u>Self-service kiosks or self-ordering kiosks</u> are customer-facing devices that allow customers to place orders and make payments <u>without the assistance of a cashier.</u>

6 0
2 years ago
The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares
viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

  • equity = 275,760,000 / 627,960,000 = 0.4391
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

  • equity = 325,760,000 / 627,960,000 = 0.5188
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0
3 years ago
What is conceptualization ​
Volgvan

Answer:

the action or process of forming a concept or idea of something in your mind

Explanation:

5 0
3 years ago
Elc inc. is an electronic appliances manufacturer that has many strategic business units (sbus), among which, television and com
Sedbober [7]

Answer:

The answer is multi-divisional structure.

Explanation:

A company employing multi-divisional structure would usually function as a parent company that has many business units under it operating different business sectors. This is clearly the case of Elc Inc., since it both manufactures televisions and computers. The fact that both businesses share the same budget shows that the two business units are still operating in the same company.

4 0
3 years ago
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