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You’ve recently learned that the company where you work is being sold for $435,000. The company’s income statement indicates current profits of $23,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” indefinitely and that the interest rate will remain constant at 7 percent, at what constant rate does the owner believe that profits will grow?
Instruction: Round your response to 2 decimal places.
Growth rate of: _______ percent.
Suppose Guild produces 5,000 guitars per year. Its average total cost is $90, and its fixed cost is $250,000. What is its variable cost?
A monopolist faces a demand function x = 1/2( 11-p) where p is the price of the product and x is the quantity demanded. The monopolist has a cost function 3+2x. The government impose a tax of t per unit of output. Assuming that the monopolist maximiz..
Explain due to a growing US economy, the overall market demand for nails will increase by 2%. Based on this information, should you plan to increase or decrease your production of nails.
The imposition of congestion charges on motorists is a form of government intervention intothe issue of traffic congestion on busy public roads. With reference to economic theorycovered in this course, why do you think the government needs to inte..
You manage a company that competes in an industry that is compromised of five equal-sized firms.A recent industry report indicates that a tariff on foreign imports would boost industry profits by $ 30 million
show the new quantity demanded at that price as we did in class. Also, show that the new total revenue will be greater than then old total revenue.
The average price of red stubble is about $8 per kilo also the fisher people's revenues for catching red stubble immediately cover their costs.
In a Monopoly market, a firm is a price maker since there are no close substitutes to the product. You are asked to find the company’s Shut-Down, Break-Even, and Profit-Maximization points. Fixed Costs remains at $1,000.00. Graph the TC and TR on one..
Rosco has a utility function over money = log(I) where log is base 10 and I is money. His initial income (I) is $1000. Suppose he must accept one of three bets: Graph each of these of a utility-of-income graph with income on the horizontal and utilit..
Role of Business Information Systems
He explains that the firm that has come up with the idea decided to start the coffee push cart in either Cleveland, Ohio, or Houston.
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur; What competition you might experience;
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