Answer:
(a) 0.667 (b) The Lerner index helps in estimating of the market power of a firm. it measures the percentage markup that a firm is able to charge.
The conditions where this market power last in the long-run are; the pricing power, Factor mobility, Barrier to entry or exist.
Explanation:
Solution
Given that:
(A) The Lerner index is computed below:
Lerner index = (P-MC)/P
Thus,
($15-$5.00)/$15
=10/15
= 0.667
(B) The Lerner index assist in measuring of the market power of a firm. it measures the percentage markup that a firm is able to charge.
Index spans from a low value (0) to a higher value of (1)
When a firm has a higher value of index, it is able to charge over it;s marginal cost and thus has a greater monopoly power
Other conditions where market power last in the long run is as follows:
- The pricing power
- Factor mobility
- Barrier to entry or exist
Answer:
High prices of products as well as increases poverty.
Explanation:
The stock market declines sharply, reducing consumers’ wealth that leads to high prices of products as well as increases poverty. The federal government increases spending on national defense that decreases the foreign reserves and money for other fields of the country. A technological improvement raises productivity which increases the economy of the country as well as standard of living. A recession overseas causes foreigners to buy fewer U.S. goods that leads to lower income of the country and purchasing power of the country. Due to this, there is less money for other fields and institutions.
Answer:
The blank spaces are not easy to spot here but I found a similar question with their correct locations. The answers for each blank will be as follows respectively;
new; new ; after-tax cost of debt ; after-tax cost of debt ; after-tax cashflows; new debt; not outstanding debt ; irrelevant ;new capital; yield to maturity; coupon rate; yield to maturity; long term debt ; long-term projects.
Explanation:
The cost of new debt is the before-tax cost of debt and does not reflect the cost of outstanding debt. Interest paid on the new debt is tax-deductible and that's why you calculate the after-tax cost of debt to use in the firms WACC formula. Since the main goal of a business managers is to increase a firm value, you use the after tax cashflows to valuate the business. Additionally, the cost at which the firm borrowed in the past is irrelevant in WACC calculation because the cost we need to know is of the new capital.
Answer:
я не знаю
Explanation:
ә рөл депо олдо ат ри мл олар топтарды рс пл
<h3>Hello there!</h3>
Your question asks what order does a activity-based costing system work by.
<h3>Answer: b, c, a, d</h3>
The order:
1. b). Identify activities and estimate their total indirect costs.
2. c). Identify the allocation base for each activity and estimate the total quantity of each allocation base.
3. a). Compute the predetermined overhead allocation rate for each activity.
4. d). Allocate indirect costs to the cost object.
The reason why the answer choice "b, c, a, d" is the correct answer because that's the correct order for the activity-based costing system.
The activity-based costing system first identifies the activities that are going on and find the indirect cost, then identifies the allocation base for the activities that are occurring to find the quantity of the allocation base, then solve the pre-determined rate of allocation for each activity, and finally get the indirect cost for the object.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
