1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
asambeis [7]
3 years ago
14

If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surpl

us. the deadweight loss will be the same as the opportunity cost of the last unit of output sold. the deadweight loss will be maximized. there is no deadweight loss.
Business
1 answer:
marysya [2.9K]3 years ago
4 0

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

You might be interested in
Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands,
MrRissso [65]

Answer:

                                                                     2022         2021

EPS                                                                 $1.12         $0.99

Explanation:

EPS = NET INCOME / no of shares outstanding

       = $75801000/68000000 =1.12 (2022)

       = $68855000/ 69820000= 0.99 (2021)

3 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
statuscvo [17]

Answer:

The expected return on a portfolio is 14.30%

Explanation:

CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.

For computing the expected rate of return of a portfolio , the following formula is used which is shown below:

Under the Capital Asset Pricing Model, The expected rate of return is equals to

= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)

= 8% + 0.7 × (17% - 8%)

= 8% + 0.7 × 9%

= 8% + 6.3%

= 14.30%

The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.

Hence, the expected return on a portfolio is 14.30%

6 0
3 years ago
Ganado and Equity Risk Premiums. Maria​ Gonzalez, Ganado's Chief Financial​ Officer, estimates the​ risk-free rate to be 3.50 %​
Elza [17]

Answer:

WACC (CAPM) 5.2%

WACC (ICAPM) 5.03%

Explanation:

The weighted average cost of capital is

Ke * E/ E+D + Kd * (1 -t) D / E+D

Ke = Rf + (Rm - Rf) * \beta

Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12

Ke (CAPM) = 7.532%

Kd (CAPM) = Kd (1-t)

Kd (CAPM) = 7.60 (1-39%)

Kd (CAPM) = 4.636%

WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%

WACC (CAPM) = 5.2164%

Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86

Ke (ICAPM) = 6.596%

Kd (ICAPM) = Kd (1-t)

Kd (ICAPM) = 7.60 (1-39%)

Kd (ICAPM) = 4.636%

WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%

WACC (CAPM) = 5.03%

7 0
3 years ago
Your text suggests that you look for an agent who has been in the insurance business for how long?
Novay_Z [31]
Atleast 2 years.......
4 0
3 years ago
Read 2 more answers
Which of the following statements is false? (5 points)
zheka24 [161]
The correct answer is 

"A great deal often just happens by accident"

Great deals require searching and planning.
6 0
3 years ago
Other questions:
  • If susan sharpe, vice president of marketing, is at the stage in her market research where she is gathering information about th
    13·1 answer
  • Jorge has $300 for work he performed. He expects to spend the money in the next few weeks to buy a new bike. Which type of accou
    14·1 answer
  • An individual purchased a fixed annuity with flexible premiums. When she annuitized the policy, she chose the Life Income 10-Yea
    11·1 answer
  • 13. A kitchen sink should always be
    10·1 answer
  • Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $13,400. Of
    15·1 answer
  • Anita and Roger, two senior members of Bloncert Inc., and Wilma, their subordinate, are having a discussion about the company's
    8·1 answer
  • Please help me!! due tmrw!!!
    14·2 answers
  • DS Unlimited has the following transactions during August.
    14·1 answer
  • The sum of the explicit and implicit costs incurred in the production process is called
    7·1 answer
  • storybook company provided services to several customers during the month of december. these services have not yet been paid by
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!