If price changes by a larger percentage than quantity demanded (i.e., if demand is price inelastic), total revenue will move in the direction of the price change. ... Demand is unit price elastic, and total revenue remains unchanged. Quantity demanded falls by the same percentage by which price increases.
Answer:
F. Both firms have a dominant strategy to pick the Low Price option
Explanation:
In the given case as we can see that in the yellow form there is always a greater payoff by having a lesser price so it can be said that it set a less price
Now for the blue firm it also select the lesser price
So here the nash equilibrium would be
= (Low price, low price)
= (26,20)
The first payoff would be considered as a yellow firm and the other one is blue one
Therefore the last option is correct
Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
Answer: Equilibrium price is $20 and equilibrium quantity is 4 units.
Explanation: Equilibrium is a situation of rest, a situation where demand for a good is equal to its supply. The price that balance demand and supply is known as the equilibrium price.
![Q_{xd} = 14 - \frac{1}{2} P_{x}\\Q_{xs} = \[tex]Q_{xd} = Q_{xs} 14 - \frac{1}{2} P_{x} = \frac{1}{4} P_{x} - 1 14 + 1 = \frac{1}{4} P_{x} + \frac{1}{2} P_{x} 15 = \frac{3}{4} P_{x} 20 = P_{x}](https://tex.z-dn.net/?f=Q_%7Bxd%7D%20%3D%2014%20-%20%5Cfrac%7B1%7D%7B2%7D%20P_%7Bx%7D%3C%2Fp%3E%5C%5C%3Cp%3EQ_%7Bxs%7D%20%3D%20%5C%5Btex%5DQ_%7Bxd%7D%20%3D%20Q_%7Bxs%7D%20%3C%2Fp%3E%20%3Cp%3E14%20-%20%5Cfrac%7B1%7D%7B2%7D%20P_%7Bx%7D%20%3D%20%20%20%5Cfrac%7B1%7D%7B4%7D%20P_%7Bx%7D%20%20-%201%3C%2Fp%3E%20%3Cp%3E14%20%2B%201%20%3D%20%5Cfrac%7B1%7D%7B4%7D%20P_%7Bx%7D%20%2B%20%5Cfrac%7B1%7D%7B2%7D%20P_%7Bx%7D%20%20%3C%2Fp%3E%20%3Cp%3E15%20%3D%20%5Cfrac%7B3%7D%7B4%7D%20P_%7Bx%7D%20%3C%2Fp%3E%20%3Cp%3E20%20%3D%20P_%7Bx%7D)
[/tex] = Equilibrium price
Equilibrium quantity is given by,
Answer:
business processes
Explanation:
Enterprise software includes a database and thousands of predefined business processes that reflect best practices
