Answer:
4. The firm is minimizing its losses OR maximizing its Profit
Explanation:
Assume a monopolistically competitive firm faces the following situation:
P $20, output 13,000 units, MC 16 ATC $22, AVC = $15, and MR = $16 which statement BEST describes the firm's situation?
The statement that best describes the firm situation is that it is maximizing its profit or minimizing its losses because profit is maximized where Marginal cost is equal to marginal revenue, and that is the case of this firm. MC=MR at $16.
In conclusion, since the firm is maximizing profit, it needs not change anything but to keep producing at this level of output and price.
Non-price rationing system is commonly done by queuing (to resolve rationing problems brought by price ceilings) and by coupons (to restore buyer equilibrium). Favored customers who received special treatment from dealers when there is an excess demand, which means: owners giving goods and services to their friends, is another non-price rationing mechanism. I hope that this is the answer that you were looking for and it has helped you.
Answer:
Answer :The annual incentive fees according to Black Scholes Formular =2.5
Explanation:
a)Find the value of call option using below parameter
current price (st)=$71
Strike price(X)=$78
Rf=4%
std=42%
time=1
value of call option=15.555
Annual incentive=16% x 15.555=2.5
The annual incentive fees according to Black Scholes Formular =2.5
(b) The value of annual incentive fee if the fund had no high water mark and it earned its incentive fee on its return in excess of the risk-free rate? (Treat the risk-free rate as a continuously compounded value to maintain consistency with the Black-Scholes formula.)
current price (st)=71
Strike price(X)=78
Rf=(e^4%)-1 = 4.08%
std=42%
time=1
value of call option=17.319
Annual incentive=16% x 17.319=2.77
Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000
Explanation:
The liability refers to the obligations of the firm which are certain is going to make payment as compensation.
The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.
The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.
