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EleoNora [17]
2 years ago
15

Suppose a monopoly concrete contractor builds 20 driveways per month for $10,000 each. In order to increase sales to 21 driveway

s, the contractor must lower the price of driveways to $9,500. The marginal revenue of the 21st driveway is
Business
1 answer:
wariber [46]2 years ago
4 0

Answer: Marginal revenue is -$500.

Explanation: The marginal revenue is calculated as the change in total revenue subtracted by the change in quantity.

Total revenue is calculated by multiplying the price by the quantity:

At a quantity of 20 driveways, the total revenue is = 20 × $10,000 = $200,000

At a quantity of 21 driveways, the total revenue is = 21 × $9,500 = $199,500

Marginal revenue = $199,500 - $200,000

= -$500

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A) $1.82

Explanation:

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dividends year 2 =  $0.2645 per stock

dividends year 3 =  $0.3042 per stock

dividends year 4 =  $0.35 per stock

after year 4, we need to calculate the growing perpetuity = dividend / (return rate - growth rate) = $0.35 / (17.4% - 2.5%) = $0.35 / 14.9% = $2.35

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PV = $0.23/1.174 + $0.2645/1.174² + $0.3042/1.174³ + $0.35/1.174⁴ + $2.35/1.174⁵ = $0.1959 + $0.1919 + $0.188 + $0.1842 + $1.0537 = $1.82

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2 years ago
Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100
sergejj [24]

Answer:

The correct answer is :  Nominal GDP is 1800, real GDP is 2000, and GDP deflator is 90

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