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3 years ago

Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?

Business

1 answer:

bixtya [17]3 years ago

4 0

Answer:

B) If the firm does not exit the industry in the long run its demand curve will shift to the left.

Explanation:

This is because the statement "If the firm does not exit the industry in the long run its demand curve will shift to the left, " simply means that if the monopolistic competitive firm stays in a particular industry for long, the firm will experience a situation in which less of the good or service is demanded at every price.

However, this cannot be true because a monopolistic competitive firm produces unique products that tend to have its specific customers. These customers, in the long run, will demand more goods and services of the firms which will be affected positively by a lot of reasons including prices of related goods, increase in salary, better economy at large, etc.

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Wolf Den Craft Beers projects that it will need $50 million in total assets to meet the sales projection of $65 million. The p

ivanzaharov [21]

Answer:

$5 million

Explanation:

As we know the asset is financed from two capital sources equity and liability.

Using Accounting equations as follow

Assets = Equity + Liabilities

Total Assets Value = Equity Value + ( Account Payable + Accrued expenses + Long-Term Debt )

As we both sides are not equal, asset are more that the sum of equity and liabilities so we need more borrowing to finance the assets.

$50 million = $25 millions + ( $8 million + $2 million + $10 million ) + Additional Borrowing

$50 million = $25 millions + $20 million + Additional Borrowing

$50 million = $45 millions + Additional Borrowing

Additional Borrowing = $50 million - $45 millions

Additional Borrowing = $5 million

7 0

3 years ago

In one day madison laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. what was its productivity?

JulijaS [17]

Per wash load, productivity is $0.47.

<h3>Define productivity.</h3>

A common definition of productivity is the ratio of input volume to output volume. In other words, it assesses how effectively an economy uses labor and capital as production inputs to create a particular amount of output.

Being able to create, especially quickly and with excellent quality, is a sign of productivity. Making excellent school tasks in a short amount of time is an example of productivity. How quickly toys can be produced in a toy factory is an illustration of productivity.

It is computed by dividing a company's outputs by the inputs it used to achieve those outputs.

To learn more about productivity from the given link:

brainly.com/question/22852400

#SPJ4

5 0

2 years ago

A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra

Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

$Ke= 0.085 + 1.3 (0.045)$

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

$\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value$

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{3.444}{(1 + 0.1435)^{1} } = PV$

3.011805859

$\frac{4.23612}{(1 + 0.1435)^{2} } = PV$

3.239633762

$\frac{61.6686857}{(1 + 0.1435)^{2}} = PV$

47.16201531

We add them and get the value of the stock:

53.413455

5 0

3 years ago

Bedrock Company reported a December 31 ending inventory balance of $412,500. The following additional information is also availa

belka [17]

Answer:

The correct Ending Balance = $ 390300

Explanation:

Ending Balance of inventory = $ 412500

Less Office Supplies = $22,200

The correct Ending Balance = $ 390300

Goods already cosigned are the consignor's inventory unless they are sold. They are not included in the consignee's inventory. So they will be included in the ending inventory.The office Supplies are not the inventory goods. They are daily expense goods and are not included in the inventory.

3 0

3 years ago

Read 2 more answers

Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi

stira [4]

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Place more oil on the market this year, shifting the curve rightward.

Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.

Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

6 0

3 years ago