Disadvantage of multiple chain store?

If the supply function for a commodity is p = q2 + 6q + 16 and the demand function is p = −7q2 + 2q + 436, find the equilibrium

adell [148]

Answer:

equilibrium quantity = 7

equilibrium price = 107

Explanation:

Data provided in the question:

supply function, p = q² + 6q + 16 ........(1)

demand function is p = −7q² + 2q + 436

Now at equilibrium

Demand = Supply

Thus,

q² + 6q + 16 = −7q² + 2q + 436

or

q² + 6q + 16 + 7q² - 2q - 436 = 0

or

8q² + 4q - 420 = 0

or

2q² + q - 105 = 0

on solving for the roots of q

using the Quadratic Formula where

a = 2, b = 1, and c = -105

$[ x = \frac{ -b \pm \sqrt{b^2 - 4ac}}{ 2a }]$

a = 2, b = 1, and c = -105

Thus,

$[ q = \frac{ -1 \pm \sqrt{1^2 - 4(2)(-105)}}{ 2(2) }]$

$[ q = \frac{ -1 \pm \sqrt{1 - -840}}{ 4 }]$

$[ q = \frac{ -1 \pm \sqrt{841}}{ 4 }]$

The discriminant ( b² - 4ac > 0)

so, there are two real roots.

Therefore,

$q = [\frac{ -1 \pm 29}{ 4 }]$

$[ q = \frac{ 28 }{ 4 } \; \; \; q = -\frac{ 30 }{ 4 }]$

$[ q = 7 \; \; \; q = -\frac{ 15}{ 2 }]$

since,

Quantity cannot be negative

Thus,

q = 7

therefore, substituting q in (1)

p = 7² + 6(7) + 16

or

p = 49 + 42 + 16

or

p = 107

4 0

3 years ago

Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book

Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return

This principle can be applied as follows:

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

7 0

3 years ago

Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. Th

AfilCa [17]

Answer: The correct answer is "(A) Materiality.".

Explanation: The concept demonstrated is Materiality because by having a mechanism for preventing bad accounts through their strict requirements, they only recorded bad accounts when they actually existed, instead of making a provision.

6 0

3 years ago

Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit t

Strike441 [17]

Answer:

The gross profit margin of Candy Company is 65% (second option)

Explanation:

The gross profit margin is defined as:

Mg = (sales - costs) / price of sales

If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:

Mg = ($320,000- $112,000) * 100% / $320,000 =

Mg = $208,000 * 100% / $320,000 = 0.65 * 100%

Mg = 0.65 * 100%

Mg = 65%

6 0

4 years ago

. One of the most commonly used operations management tools is cognitive mapping which is used to better understandthe psycholog

Dennis_Churaev [7]

Answer:

The correct answer is letter "B": False.

Explanation:

Scientific Management also called Taylorism after American economist and father of this theory Frederick Winslow Taylor (1856-1915), looks for increasing companies' efficiency by improving labor productivity and understanding the psychology of workers.

That will be achieved by <em>hiring the correct workers for a job, monitoring their performance and providing training, and dividing the work between management and workers correctly so managers can take care of handling the business operations while employees of executing those operations.</em>

7 0

4 years ago

Disadvantage of multiple chain store?​

Disadvantage of multiple chain store?