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Calculate Economic profit:
Suppose a monopolistically competitive firm is facing the following demand and cost information.
a. If the firm is a profit maximizer, how many units of output should the firm produce? How did you find this number? Explain.
b. What price should the firm charge? Why? Explain.
c. What is the amount of economic profit (or economic loss) earned (or incurred) by the firm?
d. What do you predict will happen in the long-run? Why? 2. Your friend Mike owns a coffee shop in a town with many competing coffee shops in a monopolistically competitive industry. One day Mike tells you (a trained economist) that he is earning an economic profit and is currently setting his price equal to his marginal cost. Is Mike producing the profit-maximizing amount of coffee? If not, what should he do? Explain. What will be effect of that proposed course of action? 3. Your friend Alberta is the owner of a boutique clothing store in a monopolistically competitive clothing market, so Alberta's store has some degree of market power. Assume further that the market is in long-run equilibrium. Over coffee, Alberta tells you that she is considering raising the price of her clothing to increase her profits. What is your advice?
Corporation Tax This is the tax payable by companies on their trading activities of a given financial period. The standard doesn’t give the guidelines on how this tax should be
what is the profitability of
Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)
OCF 218200 will result in a zero net present value for the project. The FC 329000 and CM 216.4 per unit. Financial break even?
We consider two identical firms that produce the same good. The demand for that good is the function D(p) = 1 - p where p is the unit price. Firms incur no cost. The competition
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basics
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i have project on "cengagebrain" for framework class. its pretty long
Q. Design a organisational strategy? The objectives to which organisational approach relates depend on the relative power of different stakeholders associated with the company
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