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3 years ago

If a competitive firm can increase its profits by increasing its output, then the firm's:

1 answer:

3 0

If the firm can increase its profit by increasing its output then the firm is not producing at where the marginal cost is equal to the marginal revenue. A profit-maximizing firm in a competitive market will produce its output at the point in which MC=MR.

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Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.40 dividend every year, in perpetuity. If thi

PilotLPTM [1.2K]

Answer:

The required return is 7.92%

Explanation:

Required return is defined as the minimum return which the investor expects to accomplish through investing in the project.

The required return would be computed as:

Required return = Dividend paid each year / Selling price per share

where

Dividend paid each year is $6,40

Selling price per share amounts to 480.80 per share

Putting the values above:

Required return = $6.40 / $80.80

Required return = 7.92%

7 0

3 years ago

Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If managem

bija089 [108]

Answer:

d.$87,920

Explanation:

Residual Income = Net Income - Cost of Investment

therefore

Residual Income = $166,000 - ($976,000 x 8%)

= $87,920

8 0

2 years ago

U.S. demand for Japanese products creates a ________ U.S. dollars and a ________ Japanese yen in the foreign exchange market.

crimeas [40]

Answer:

The correct answer is option C.

Explanation:

US demand for Japanese products will create a supply of US dollars and demand for Japanese yen in the foreign exchange market.

This is because when the US consumers purchase Japanese products they need to pay in Japanese yen, so they will exchange US dollars for Japanese yen. Consequently, this will lead to an increase in the supply of US dollars and a demand for Japanese yen.

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3 years ago

What happens to the individual demand curve as the price of an item increases?

grin007 [14]

Answer:

b. An individual demand for an item will decrease causing a downward slope.

Explanation:

The law of demand states that when other factors are held constant, the price and demand have inverse relationship, which means that as one increases, the other one decreases. So in the case of the of your problem, as the price of an item increases, the demand will decrease (the opposite would be true as well).

So when you put it in a graph, the demand curve would be sloping downwards.

3 0

3 years ago

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive

Anit [1.1K]

Answer:

A. Variable cost per unit 0.075 per kilometer

Fixed cost $7,998

B. Y= 0.075 + 7,998X

Explanation:

A. Calculation to estimate the variable and fixed cost elements of the annual cost of the truck operation.

First step is to calculate the operating cost if the Truck is driven 129,000 kilometers during a year in which the average operating cost is 13.7 cents per kilometer

Operating cost= 129,000 x 13.7/100

Operating cost= $17,673

Second step is to calculate the operating cost if Truck is driven only 86,000 kilometers during a year in which the average operating cost increases to 16.8 cents per kilometer.

Operating cost = 86,000 x 16.8/100

Operating cost =$14,448

Calculation for VARIABLE COST PER UNIT using this formula

Variable cost per unit = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

Let plug in the formula

Variable cost per unit= $17,673-$14,448)/(129,000-86,000)

Variable cost per unit= 3,225/43,000

Variable cost per unit= 0.075 per kilometer

Calculation for FIXED COST using this formula

Fixed cost = Highest activity cost - Highest activity x Variable cost per kilometer

Let plug in the formula

Fixed cost= $17,673 - 129,000 x 0.075

Fixed cost= $17,673 -$9,675

Fixed cost=$7,998

Therefore the variable is 0.075 per kilometer and fixed cost elements of the annual cost of the truck operation is $7,998

B. Expression of the variable and fixed costs in the form Y = a + bX.

Y = a + bX

Y= 0.075 + 7,998X

Therefore the variable and fixed costs in the form Y = a + bX will be Y= 0.075 + 7,998X

8 0

2 years ago