Answer:
B
Explanation:
First, a monopoly produce less than the socially efficient quantity because as the figure shows, the quantity produced is determined by the intersection between the marginal cost curve (MC) and the marginal revenue curve (MR) and not by the intersection between the MC and the demand. For instance, there is a deadweight loss (shown by the figure).
Second, equilibrium price is always higher than in a competitive market because is always higher than the MC. The price is determined by the equilibrium quantity (found before) and the demand. Also, there are barries to entry and so monopolist have always price control.
Answer:
Dr. Allowance for Doubtful Accounts $7,400
Cr. Accounts Receivable $7,400
Explanation:
A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.
Answer:
The price of a dose should be 80 dollars for the annual suply to be equal to the annual demand
Explanation:
We have the following variabels
Annual demand = 1000-3p
Annual supply = 600 + 2p
<em>To know the price we should equal the supply and the demand</em>
Annual supply = Annual demand <em>Replace the equations in the variables</em>
600 + 2p = 1000 - 3p <em>Clear p in the equation</em>
2p + 3p = 1000 - 600
5p = 400
p = 80
The price of a dose should be 80 dollars for the annual suply to be equal to the annual demand
Answer:
The 1-year HPR for the first stock is 16.18%
Explanation:
The computation is shown below:
For investment 1 -
The formula is shown below:
= (Income × quarter ) +Value at the end - Value at the beginning ÷ (Value at the beginning) × 100
= {($0.38 × 2) + $29.25 - $25.83} ÷ ($25.83) × 100
= ($0.76 + $29.25 - $25.83) ÷ ($25.83) × 100
= ($4.18 ÷ $25.83) × 100
= 16.18%
Answer:
The securities should a risk-averse investor purchase if the investment will be held in isolation is A because It has the lowest coefficient of variation.
Explanation:
We use the co-efficient of variation to calculate the risk level of the given stocks. The coefficient of variation is the measurement of risk of return.
A B C D E
Expected Returns 7% 10% 12% 25% 18%
Standard Deviation 2% 18% 15% 23% 15%
Use Following Formula to Calculate coefficient of variation.
Coefficient of variation = ( Volatility / Expected Return ) x 100
As Standard Deviation represent the volatility.
Coefficient of variation = ( Standard Deviation / Expected Return ) x 100
A. Coefficient of variation = ( 2% / 7%) x 100 = 28.57%
B. Coefficient of variation = ( 18% / 10%) x 100 = 180%
C. Coefficient of variation = ( 15% / 12%) x 100 = 125%
D. Coefficient of variation = ( 23% / 25%) x 100 = 92%
E. Coefficient of variation = ( 15% / 18%) x 100 = 83.33%