Economists have identified four types of competition. Perfect competition, monopolistic competition, oligopoly, and monopoly.
Answer:
2017 = $2,587.50
2018 = $10,350
Explanation:
The computation of the depreciation expense using the straight line method for the year 2017 and 2018 are shown below:
As we know that
The formula to compute the depreciation expense under the straight-line method is
= (Purchased Cost - salvage value) ÷ useful life
For 2017 year
= ($80,360 - $7,910) ÷ 7 year
= $10,350
For 3 months, it is
= $10,350 × 3 ÷ 12
= $2,587.50
And, for 2018, it is $10,350
Answer:
Weight w1 = 0.65
Weight w2 = 0.35
Expected return =10.75%
Explanation:
w1 + w2 = 1 ........... (1)
w1 = SD of asset 2/(SD of asset 1 + SD of asset 2)
w1 = 11 ÷ (6 + 11) ⇒ 0.65
∴ w2 = 1 - w1 ⇒ 1 - 0.65
w2 = 0.35
Expected return = Weighted average
[0.65 × 9] + [0.35 × 14] ⇒ 10.75%
Answer:
It acts as a stimulus to a market
Explanation:
Incentive encourages people to act in a particular and desired way. It is anything that motivates people to work hard to achieve set objectives.
Since incentives influence behavior, they can act to stimulate the market. Stimulating the market refers to the actions that encourage increased economic activities. Incentives lead to increased levels of activities in the market.
Answer:
Monthly Interest rate = 0.475%
EAR = 5.85%
Explanation:
a.
APR = 5.7%
Monthly Interest rate = APR / n
Monthly Interest rate = 5.7% / 12
Monthly Interest rate = 0.475%
b.
APR = 5.7%
m = 12
EAR = [ ( 1 + (APR / m))^m] - 1
EAR = [( 1 + (0.057 / 12))^12] - 1
EAR = [( 1 + 0.00475 )^12] - 1
EAR = [( 1.00475 )^12] - 1
EAR = 1.0585 - 1
EAR = 0.0585
EAR = 5.85%
True monthly rate of interest is 0.475%
EAR is 5.85%
