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3 years ago

Differentiate between external economics of scale and internal economics of scale of production.

Business

1 answer:

sergeinik [125]3 years ago

8 0

Answer:

There are two types of economies of scale: internal and external economies of scale. Internal economies of scale are firm-specific—or caused internally—while external economies of scale occur based on larger changes outside the firm. Both result in declining marginal costs of production, yet the net effect is the same

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A dispute is:

maw [93]

Hey :)

I would say it’s b) Claim or argument that an error was made

Hope this helps!

3 0

3 years ago

If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock.

pav-90 [236]

Answer:

0.11 or 11%

Explanation:

The computation of the required rate of return is given below:

Required Rate of Return is

= Next Year Dividend ÷ Current Market Price + Growth Rate

= $3.15 ÷ $52.50 + 0.05

= 0.06 + 0.05

= 0.11 or 11%

working note

Given that

Current Market Price = $52.50

As we know that

Growth Rate = Return on Equity × Retained Earning Ratio

Now

Return on Equity = EPS ÷ Book Value of Share

= $5 ÷ 40

= 12.50%

So,

Retained Earning Ratio is

= 1 - Dividend Payout Ratio

= 1 - 0.60

= 0.40

And,

Dividend Payout Ratio = DPS ÷ EPS

= $3 ÷ $5

= 0.60

Now

Growth Rate = 12.50% × 0.40

= 5%

So,

Next Year Dividend = Dividend Recently paid × (1 + growth rate )

= $3 × 1.05

= $3.15

7 0

3 years ago

A manager striving to improve organizational ___________ is accomplishing tasks that help achieve organizational objectives. a.

Elis [28]

Answer:

The answer is B.Effectiveness.

Explanation:

Effectiveness is accomplishing tasks that help fulfill organizational objectives.

7 0

3 years ago

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.suppleme

JulsSmile [24]

Answer:

A, supplementary

Explanation:

A supplementary service can be said to be an added service to an original service package.

That is, a supplementary service can be said to be an extra service or services that is embedded in a whole service.

For example, when you go to a tech store to have your hard drive replaced, a supplementary service such as general cleaning and routine check of your computer is included in the hard drive replacement service.

The main or core service is hard drive replacement while the supplementary service includes cleaning and routine check of other computer components.

Cheers.

4 0

3 years ago

A stock's contribution to the market risk of a well-diversified portfolio is called ___ risk. According to the Capital Asset Pri

zloy xaker [14]

Answer:

a) TRUE

b) FALSE

c) TRUE

Explanation:

A stock's contribution to the market risk of a well-diversified portfolio is called SYSTEMATIC risk.

a) TRUE. If beta of stock A = 1, stock A will move in the same direction as the market, by about the same amount.

b) FALSE. Higher beta stocks are expected to have higher required returns, as investors expect to receive higher compensation due to higher risk level of high beta stocks

c) TRUE. Market portfolio has beta = 1. Any stocks that have beta > 1 will be more volatile than the market.

3 0

4 years ago

Differentiate between external economics of scale and internal economics of scale of production.​

Differentiate between external economics of scale and internal economics of scale of production.