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Evgen [1.6K]
3 years ago
11

The competitive firm's demand curve is: a. unit elastic over the relevant range of output. b. perfectly elastic over the relevan

t range of output. c. perfectly inelastic over the relevant range of output. d. elastic above the market price and inelastic below the market price.
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

perfectly elastic over the relevant range of output.

Explanation:

In a perfect competition there are many firms in the market selling goods that are usually homogeneous in nature. Each individual firm will not be able to influence the price for which it offers goods and services to the customer.

The firm's are price takers and there is no barrier to entry.

This results in a situation where for all levels of quantity demanded there is no change in price, and demand curve is a horizontal line.

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3 0
2 years ago
Which of the following is not a disadvantage to cash advances on a credit card? a. Cash advances are similar to loans in that th
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7 0
3 years ago
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3 0
3 years ago
ABC Inc. just paid a dividend of $1.00 this year. The stock price is $15.43 currently. The market risk premium is 15% and the ri
mariarad [96]

Answer:

Price lowers and becomes negative or -5.37 dollars

Explanation:

Market risk premium's formula could be written as dividends/price + dividend's growth rate. Therefore, we dividend growth rate according to the current price and dividend level equal to market risk premium - dividends/price or 0.15 - 1/15.43 = 0.086 or 8.6%. If the dividend growth rate rises by 25% than new one is 33.6%. Price is equal to dividends/market risk premium - dividend growth rate or in this case 1/0.15-0.336 or 1/-0.186 or -5.37 dollars. If the price is negative that would mean that any future selling of the stock would mean that ABC would have to pay in order to sell it.

4 0
3 years ago
A company is considering the purchase of a new piece of equipment for $117,200. Predicted annual cash inflows from this investme
monitta

Answer:

3.79 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $117,200

In year 1 = $53,000

In year 2 = $21,500

In year 3 = $26,500

In year 4 = $20,500

In year 5 = $23,000

If we sum the first 3 year cash inflows than it would be $101,000

Now we deduct the $101,000 from the $117,200 , so the amount would be $16,200 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $20,500

So, the payback period equal to

= 3 years + $16,200 ÷ $20,500

= 3.79 years

In 3.79 years, the invested amount is recovered.  

8 0
3 years ago
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