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olchik [2.2K]
2 years ago
10

If Rajiv's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price f

rom $125,000 to $75,000 would result in the same change in the production quantity and, thus, total revenue. a) True b) False
Business
1 answer:
Sonbull [250]2 years ago
5 0

Answer:

b) False

Explanation:

The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own.  This will in turn drive sales and the production quantity to increase marginally in the short-run.  However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.

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If only one airline serves a town, does a monopoly exist? What about competition from other services?
Nadya [2.5K]

If only one airline serves a town, the <em>question </em>of whether a monopoly exists is:

  • Yes, a monopoly exists

Based on the given question, we are asked to state whether a monopoly exist in a situation where there is only one airline in a town, and the answer is, yes, that is a monopoly

It is important to note that a monopoly has to do with the domination of one company in a market system whereby there is little to no competition from other companies. In this situation, there is usually higher prices of products because there is a <em>lack of competition</em> for competitive prices.

Read more about monopoly here:

brainly.com/question/13113415

3 0
2 years ago
Read 2 more answers
"if our company achieves a high level of relational coordination, what can we expect in terms of employee behavior?" check all t
scoray [572]

If a company has a high level of relation coordination then the expected employee behavior is good as well. The employees respond to the company is highly satisfactory

6 0
3 years ago
Consider the following three stocks. (a) Stock A is expected to provide a dividend of $10 a share forever. (b) Stock B is expect
Archy [21]

Answer:

The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).

Explanation:

to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.

Let r be the discount rate which is 10%.

a.

The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.

The price of this stock can be calculated as,

Price or P0 =  Dividend / r

P0 = 10 / 0.1  = $100

b.

The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.

P0 = D1 / r - g

Where,

  • D1 is the dividend for the next period
  • r is the cost of equity or discount rate
  • g is the growth rate in dividends

P0 = 5 / (0.1 - 0.04)

P0 = $83.33

c.

The price of this stock can be calculated using the present of dividends.

P0 = 5 / (1+0.1)  +  5 * (1+0.2) / (1+0.1)^2  +  5 * (1+0.2)^2 / (1+0.1)^3  +  

5 * (1+0.2)^3 / (1+0.1)^4  +  5 * (1+0.2)^4 / (1+0.1)^5  +  5 * (1+0.2)^5 / (1+0.1)^6

P0 = $34.28

3 0
3 years ago
You think that in 15 years it will cost $214,000 to provide your child with a 4-year collge education. Will you have enough if y
prisoha [69]

Answer:

You will not have enough.

Explanation:

The rate of the investment is compounded, so the value at year 1, will be the value at year 0, increased in a 4%. Then, the value at year 2 will be the value at year 1, increased in other 4%, that's equal to the value at year 0 increased twice at 4%.

So, the formula to calculating the value at year 15 is 75,000*(1.04)^15 = 135,070.63. THen, it will not be enough. You have to invest at least 214,000/1.04^15 = 118,826.20 at year 0, at a rate of 4%.

8 0
2 years ago
What is the difference between an elementary educator and a high school educator?
Nuetrik [128]
Elementary educators have to be patient and careful with what, how, and where they teach. High School educators need to be strict about when, and how.
5 0
3 years ago
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