Answer:
Monopolist profit maximizing price
A: $3 per gallon , total output =270 Kelvins profit = $810(801/7/2 = $405
Maria's profit = $405
B. $2.5 per gallon . Kelvin's profit =$450 Maria's profit = 337.5
C = False. At the same quantity , fall in price brings fall in revenue
Cournot Nash equilibrium
Explanation:
In a monopolist market system , price are set higher than the marginal cost as the producer enjoy the dominance of the market through the production of a unique good.
At the price of $3 , change in demand =(270-225) =45 , change in revenue = ($810-$787.50)22.5 and marginal revenue = (45/22,5) = 0.5. That forms the maximizing price for a monopolist.
On the new arrangement , price drops to $2.5 , Maria's profit =(315-45/2)2.5 = $337.5 and Kelvin's = ($787.5-337.5) = $450
Cournot Nash equilibrium is business model that explains the competition among rival companies producing similar product on the level of output produced independently.
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Answer:
The main determinant is the NET IMPORT, if the net import is higher than the net export then countries like the United States of America will have a low standard of living,while if the net export is higher than the net import then Countries like the United States of America will enjoy a high standard of living.
COMPARED TO NET EXPORTS, COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A LOWER NET IMPORT WHICH GIVES THEM A POSITIVE BALANCE OF TRADE.
Explanation: THE VOLUME OF IMPORT IS NOT THE MAIN CONCERN, THE MAIN CONCERN IS THE VOLUME OF NET IMPORT COMPARED TO THE VOLUME OF NET EXPORT COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A HIGHER NET EXPORT THAN NET IMPORT WHICH GIVES THEM TRADE ADVANTAGE AND A POSITIVE BALANCE OF TRADE. With a good balance of trade a country like the United States of America will maintain and enjoy a high standard of living as the volume of imports is always lower than the value of what is exported.
Your total promotion budget would be 2300 i guess
Answer: c. A negative translation adjustment must be reported
Explanation:
The Consolidated financial statements will need to be translated to reflect the depreciation in the Yuan. Seeing as the Yuan is the functional currency, it needs to be translated by the current rate.
The Yuan dropped in value, that means that the inventory dropped in value as well.
For this reason, the corrective measure is a NEGATIVE TRANSACTION ADJUSTMENT in the Consolidated books.
