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4 years ago

If production is occurring where marginal cost exceeds price, the purely competitive firm will __________.

Business

1 answer:

devlian [24]4 years ago

8 0

Answer:

C. fail to maximize profit and resources will be overallocated to the product

Explanation:

At MC < P, the firm may earn profit but that is not maximum the maximu profit condition is that MR = MC and in perfect competition MR = P so MC = P is the maximum condition.

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You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c

ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

8 0

3 years ago

When the present value of the cash inflows exceeds the initial cost of a project, then the project should be: accepted because t

AURORKA [14]

Is the multiple chose in it right or nah? <span />

6 0

3 years ago

A manufacturer shipped units of a certain product to two locations. The equation above shows the total shipping cost TTT, in dol

andriy [413]

Answer: 2,200 units.

Explanation:

The complete exercise is:

$T = 5c + 12 f$

A manufacturer shipped units of a certain product to two locations. The equation above shows the total shipping cost T, in dollars, for shipping c units to the closer location and shipping f units to the farther location. If the total shipping cost was $47,000 and 3,000 units were shipped to the farther location, how many units were shipped to the closer location?

Given the following equation:

$T = 5c + 12 f$

You know that "T" is the total shipping cost (in dollars), "c" is the number of units shipped to the closer location and "f" is the number of units shipped to the farther location.

Based on the information given in the exercise, you can identify that, in this case:

$T=47,000\\\\f=3,000$

Then, knowing those values, you need to substitute them into the given equation:

$47,000 = 5c + 12(3,000)$

And finally, you must solve for "c" in order to calculate the number of units that were shipped to the closer location.

You get that this is:

$47,000 = 5c + 12(3,000)\\\\47,000-36,000 = 5c\\\\11,000=5c\\\\\frac{11,000}{5}\\\\c=2,200$

3 0

3 years ago

Read 2 more answers

An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on thre

andreev551 [17]

Answer:

30.8

Explanation:

The solution of factor-rating score for Ling Services is provided below:-

Factor-rating score = (Weight for Factor A × Rating for Factor A) + (Weight for Factor B × Rating for Factor B) + (Weight for Factor C × Rating for Factor C)

= (0.50 × 30) + (0.20 × 46) + (0.30 × 22)

= 15 + 9.2 + 6.6

= 30.8

So, we have calculated the factor-rating score for Ling Services by using the above formula.

8 0

3 years ago

When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other

GenaCL600 [577]

Answer:

The answer is Late-mover disadvantages

Explanation:

A late mover is a company that enters a business some time after the business pioneers and early followers.

From the question above, Galaxy Ventures is a late mover in the low-cost housing business. They were at a huge disadvantage, and this includes:

First of all, lack of customer loyalty and substantial dividends (from the question).
The pioneers and early followers can set the business standards which may be difficult for a late mover to follow.
The pioneer can easily create entry barriers that a late-mover might find difficult to break.

3 0

3 years ago