<u>In </u><u>microeconomics</u><u>, the term </u><u>monopoly</u><u> is synonymous with decreasing returns of scale.</u>
When there are economies of scale in production?
As output increases, the long-run average total cost decreases. The total variable cost of creating five units of output is indicated by the Y-interval between the two curves in the diagram.
Is price and marginal cost equal?
- In economics, the practice of setting a product's price to cover the additional expense of producing an additional unit of output is known as marginal cost pricing.
- This policy limits the producer's ability to charge for each unit of a product sold to the addition to total cost attributable to materials and direct labor.
Simply put, what is microeconomics?
- Microeconomics is the study of how people, households, and businesses make decisions and distribute resources.
- It generally pertains to markets for goods and services and addresses both personal and financial concerns.
Learn more about microeconomics
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Answer:
The present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57
Explanation:
Solution:
Given that
The present value =∑ ⁿ t=1 cf/ (1 +r)t
where cf= cash flow
r =the required rate of return
t = the number of years
Now
The present value will be:
cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6
Hence,
cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years
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Answer: Core customer value
Explanation:
Core customer value could be seen as focusing on customers who basically buy your product and what can be done to keep them or improve services for them. Most manufactures are on the lookout on what their customers really want and how they can give it to them in a great manner which would also be affordable. Customers are gold, hence, when not treated well they can be lost to another manufacturer considering the competition of the market. Core customer value focuses on what better can the manufacturer offer the customer.
Klamath corporation has insufficient information to find ROE.
Return on equity (ROE) is the degree to of an agency's internet earnings are divided by using its shareholders' equity. ROE is a gauge of a corporation's profitability and how successfully it generates one's income. The better the ROE, the higher an employer is at changing its fairness financing into income.
ROE is used while evaluating the monetary performance of agencies within the identical enterprise. it's far a measure of the capability of management to generate earnings from the equity available to it. A go-back of between 15-20% is considered good.
The return on equity is a degree of the profitability of an enterprise with regard to fairness. Because shareholder's equity may be calculated with the aid of taking all belongings and subtracting all liabilities, ROE also can be the idea of a return on belongings minus liabilities.
ROE=Profit margin*Total asset turnover*Equity multiplier
Hence since Equity multiplier data is not given.
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<span>A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the better off the person is financially. </span>
When you are in good financial standing, if it necessary to have a low debt ratio. The debt ratio is how much debt to income or net worth someone has. When you have a low debt ratio you are often approved for larger loans and can sustain financial freedom more easily.
