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2 years ago

Difference between partial equilibrium and general equilibrium in the simplest form

Business

1 answer:

aleksandrvk [35]2 years ago

4 0

Answer:

In a partial equilibrium model, you are ignoring feedback that may result from related markets. ... Normally, in a general equilibrium model, the equilibrium quantities and prices in all markets are endogenous.

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7 0

2 years ago

Sunny corporation reported the following results for december: Description AmountNumber of units sold 800 unitsSelling price per

Llana [10]

Answer:

The gross margin for December is: 0.5%.

The Gross margin of an organisation or business measure the extent by which its income exceeds the costs it incurs in producing its goods and or services.

The gross margin is measured in percentages. The higher the percentage of this margin, the higher the effectiveness of the company's management in deriving value from every dollar invested.

Explanation:

To arrive at Gross Margin, one is required to subtract the total cost of goods sold from total revenue for the period and dividing that number by revenue. That is:

Gross Margin (GM) = $\frac{Revenue-Cost of Goods Sold}{Revenue}$

Step I - Calculate Revenue

This is given as the total amount of goods sold which is:

800 x $500 = $400,000

Step II - Calculate Cost of Goods Sold

Cost of goods sold per unit is given as

$250 per unit.

Total Cost of Goods sold therefore is

800 x $250 = $200,000

Step III - Calculate Gross Margin

= $\frac{400,000-200,000}{400,000}$

= $\frac{200,000}{400,000}$

= $\frac{1}{2}$ or 0.5%

Cheers!

7 0

3 years ago

Smith Jones Inc.'s stockholders are mostly individual investors, and there is relatively little institutional ownership. If seve

Anastasy [175]

Answer:

Small individual investors will benefit the most.

Explanation:

From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.

Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.

From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.

6 0

3 years ago

Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $

Flauer [41]

Answer: The internal rate of return for project A is $26,074.38

Explanation:

Using the formula

R1/(1+K)^1 R2/(1+K)^2+ - - - Rn/(1+K)^n -

C =0

Where C = capital outlay, K=Rate of interest, R=Net cash flow

Given that K=10%, (10/100)=0.1 R1=$65,000, R2=$75,000 C =$95,000

Project A

65,000/(1+0.1)^1 + 75,000/(1+0.1)^2 - 95,000

65,000/(1.1)^1 +75,000/(1.1)^2 - 95,000

59090.91 + 61983.47 - 95,000

121074.38 - 95000

= $26,074.38

Project B

R1=$64,000, R2=$67,000,R3=$56,000, R4=$45,000 C =$120,000

64,000/(1+0.1)^1+ 67,000/(1+0.1)^2+ 56,000/(1+0.1)^3 + 45,000/(1+0.1)^4 - 120,000

64,000/(1.1)^1 + 67,000/(1.1)^2 + 56,000/(1.1)^3 + 45,000/(1.1)^4 - 120,000

58181.82 + 55371.90 + 42073.63 + 30735.61 - 120,000

= 186362.96 - 120,000

= $66,362.96

4 0

3 years ago

Which of these is not a typical option for dealing with a risk?

Viefleur [7K]

Risk management is an on-going process, and is a combination of proactive management directed activities within a programme that are intended to accommodate the possibility of failures.

6 0

3 years ago

Difference between partial equilibrium and general equilibrium in the simplest form​

Difference between partial equilibrium and general equilibrium in the simplest form