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Liula [17]
2 years ago
10

If own price elasticity of demand for your market is -1.2, and your marginal cost is flat at 10, what is the optimal price for y

our monopoly firm
Business
1 answer:
scZoUnD [109]2 years ago
8 0

Answer: $60

Explanation:

The optimal price for a monopoly firm is expressed by;

Price = Marginal Cost * ( Own Price Elasticity/ (1 + Own Price Elasticity))

Price = 10 * ( -1.2 /( 1 - 1.2)

Price = 10 * (-1.2/-0.2)

Price = 10 * 6

Price = $60

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has a target debt−equity ratio of 1.35. Its WACC is 8.3 percent, and the tax rate is 35 percent. If the company’s cost of equity
dsp73

Answer:

5.74%

Explanation:

WACC = weight of equity x cost of equity +  weight of debt x cost of debt x (1 - tax rate)

weight of debt =  D / (D + E) = 1.35/ (1.35 + 1) = 0.574468 = 57.4468%

weight of equity = 100% - 57.4468% = 42.5532%

let x represent pretax cost of debt

8.1% = 0.425532 x 14% +( 0.574468x) x 0.65

8.1% = 0.373404x + 5.957448%

solve for x

x = 5.74%

5 0
3 years ago
Explain the meaning of “strong” currency and “weak” currency. what are the advantages and disadvantages of each?
Natalka [10]
Strong currency and weak currency are relative. The terms are used to describe the value and the strength of a currency against other currencies.
 
When in strong currency, one can purchase more foreign currency and consumer will see lower or cheaper prices on foreign products. It helps to keep the inflation low. However, the disadvantage is most of the increase in spending will be in countries that are in weaker currency as consumer will less spend on local products.

If in weak currency, country’s export gets cheaper resulting to increase in sales that will lead to economic growth. The disadvantage is inflation will go higher and it will become more expensive to pay foreign investors that are priced in foreign currency.

8 0
2 years ago
The The person who receives financial protection from a life insurance plan is called a:
babunello [35]

Beneficiary is the answer i think you are looking for!

6 0
3 years ago
How is a change in the quantity demanded illustrated on the demand curve?
mars1129 [50]

Answer:

There is the diagram and some explanations

6 0
2 years ago
Bob is working on a new report for the next quarterly meeting that he knows the CEO needs to determine next​ quarter's direction
Rzqust [24]

Answer:

information exchange

Explanation:

Information exchange refers to the action of passing information from one person to another. This can be done in person, using the phone, video calling or emails or other types of electronic messages.

In this case, Bob is anxious because Anna is not exchanging information with him promptly. Instead she is wasting both her and his time by chatting with other employees.

8 0
3 years ago
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