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3 years ago

Why is it important to invest for your retirement? please explain :p

1 answer:

5 0

So that you become self-sufficient and have more control over your life in the future you don’t need to depend on Social Security, Medicare, or even relatives which are unreliable sources that you can’t control.

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Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 – 3Q. Each firm produces at a c

podryga [215]

Answer:

Explanation:

We need to find the function of firm 1 and firm 2 which we have as

PQ1/Q1= 300

600Q1– 3Q21 – 3Q1Q2/ = 300

300 – 6Q1 – 3Q2= 300

Q1 = 1/6(600 -300 – 3Q2)

Q1 = 50 – 1/2Q2 Reaction function for firm 1

Q2 = 50 – 1/2Q1 Reaction function for firm 2

Cournot which we have as;

Q2 = = 1/6(600 -300 – 3Q1)

Q2 = 50 – 1/2Q1

Q2 = 50 – ½(50 – 1/2Q1)

Q2 = 50 – 25 + 1/4Q1

Q1 = 100/3 = 33.33 Output

Q2= 100/3 = 33.33 Output

Equilibrium market price which is

P = 600 – 3(Q2+ Q2)600 – 3(100/3 + 100/3)= 400

Profits for firm 1

Π1 = TR1– C1= PQ1 – C1=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 1

Profits for firm 2

Π2 = TR2– C2= PQ2 – C2=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 2

Stackelberg is given as ;

QL= (600 – 300)/2*3 = 50 Firm 1 output is QL = 50

QF= (600 – 300)/4*3 = 25 Firm 2 output is QF =25 P = 600 – 3*75 = 375

Π1 = (375-300) * 50 = 3750Profit for firm 1

Π2 = 75*25 = 1875 Profit for firm 2

Bertrand is given as ;

Under this competition, price is the same to marginal cost and profits are zero

600 – 3Q = 300

Q = 100 Output = 100

P = Zero

Collusive Behavior is given as;

MR=MC600 - 6Q = 300

300 = 6QQ = 50 Output

P = 600 – 3*50 = 450

Π = (450 – 300) * 50 = 7,500profit

3 0

3 years ago

Think about the videos you have watched. Why is there a need for government regulation, and what limits need to be placed on the

svetoff [14.1K]

Government regulations are necessary because they protect public safety and market fairness. For example, food safety regulations help protect consumers from pathogens that could cause widespread illness. By creating regulations, the government can make the food-borne illness less likely. However, even though these regulations are necessary, they must still meet constitutional requirements. Producers and consumers have the right to own and use property, among other constitutional rights.

7 0

3 years ago

1. A coupon bond pays the owner of the bond A) the same amount every month until the maturity date. B) a fixed interest payment

a_sh-v [17]

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

A coupon bond contract, also abbreviated to as a holder stock, is a debt with a stamp that also has tiny attachable vouchers. The vouchers grant the buyer the opportunity to make interest charges from the lender.

In a coupon bond, an investor gets the face value of the bond on maturity with a fixed interest payment.

4 0

3 years ago

Read 2 more answers

Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?

liberstina [14]

Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
hope this helps!

3 0

3 years ago

Harry Corporation's common stock currently sells for $180 per share. Harry just paid a dividend of $10.18 and dividends are expe

Anastasy [175]

Answer:

$190.64

Explanation:

Data provided in the question:

Current selling price of shares = $180 per share

Dividend paid = $10.18

Expected growth rate, g = 6% = 0.06

Required rate of return, r = 12% = 0.12

Now,

The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ

here, n = 2 ( i.e the duration of next year and the following year )

thus,

D1 = $10.18 × (1 + 0.06)²

D1 = $11.438

Therefore,

Price of stock one year from now = $\frac{\textup{D1}}{\textup{(r-g)}}$

= $\frac{\textup{11.438}}{\textup{0.12-0.06}}$

= 190.637 ≈ $190.64

7 0

3 years ago