Answer: Please refer to Explanation.
Explanation:
Monopoly.
The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;
a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .
b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.
Perfectly Competitive Market
In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.
Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
Answer:
FCFE: 99
Explanation:
FCFE: cash flow from operation - CAPEX + borrowing
we calcualte the cash flwo form operation using the indirect method:
net income - preferred dividends = available for common stock
income = 125 + 14 = 139
net income 139
depreciation expense 50
change in working capital (30)
cash flow from operation: 159
CAPEX will be the long term assets investment
investment on fixed capital<u> 100 </u>
CAPEX 100
net borrowing 40
159 -100 + 40 = 99
Answer:
Order size= $57.61 per machine hour
Explanation:
Giving the following information:
Order size:
Estimated total overhead= $581,866
Estimated total machine hours= 10,100
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order size= 581,866 / 10,100
Order size= $57.61 per machine hour
Answer:
Letter D is correct. <em>Grouping people according to their psychological characteristics, values, and lifestyles.</em>
Explanation:
Psychographic segmentation is a market segmentation technique where individuals are grouped according to psychological traits such as lifestyle and behavioral patterns which may be: opinions, social status, eating habits, daily routine and many others.
This type of segmentation aims to identify psychological traits and values that influence individual consumer behavior.
