Answer:<em> The correct option in this case is (c).</em><u><em> i.e. Economic profits induce firms to enter an industry and losses encourage firms to leave</em></u>
Economic profits is the difference between total revenues and total costs excluding opportunity cost.
For a instance when a firm generates economy profits then in that scenario it will be profitable to continue and expand .
Answer:
$21.859
Explanation:
According to the scenario, computation of the given data are as follow:-
Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period
1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1
= 1.20 ÷ 1.12
= 1.071
2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2
= $1 × (1.44) ÷ 1.254
= $1.148
3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3
= $1 × (1.44) × (1.10) ÷ 1.405
= $1.127
4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4
= $1 × (1.44) × (1.21) ÷ 1.574
= $1.107
5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5
= $1 × (1.44) × (1.331) ÷ 1.762
= $1.088
6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]
= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) × (1.762)
= $2.012 ÷ 0.1233
= $16.318
Now
Share’s Current Value is
= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318
= $21.859
We simply applied the above formula
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
Answer:
The answers are:
- Seattle´s sales were 34.6% larger than Portland´s
- Portland´s sales were 25.7% smaller than Seattle´s
- Portland´s sales were 74.3% of Seattle´s
Explanation:
To calculate answer 1 you must divide Seattle´s sales over Portland´s sales, then subtract 1, and finally multiply by 100.
= [ ($350,000/260,000) - 1 ] x 100 = 34.6%
To calculate answer 2 you must subtract the result form dividing Portland´s sales over Seattle´s sales from 1, and then multiply by 100.
= [ 1 - ($260,000/350,000) ] x 100 = 25.7%
To calculate answer 3 you must divide Portland´s sales over Seattle´s sales, and then multiply by 100.
= ($260,000/350,000) x 100 = 74.3%
Answer:
$34,000
Explanation:
Accounting profit = Total revenue - Explicit costs
i.e Total revenue = $50,000
Explicit costs = $12,000 + $1,000 + $3,000 = $16,000
Therefore; $50,000 - $16,000 = $34,000.
