Answer:
An opportunity cost
Explanation:
The opportunity cost is the cost where the loss occurs from the benefit could have been enjoyed in the case when the best alternative choice was selected Since in the question it is mentioned that the company operating at a capacity and than lose revenue from the regular customers so it is an opportunity cost
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Explanation:
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Answer:
A. 5.56%
B. 13.55%
Explanation:
In this question, we are asked to calculate the equity cost using the DCF method and the SML method
A. DCF approach
cost of equity =[ D0(1+growth )/ current price] +growth
= [.40 (1+.05) / 70 ] + .05
= [ .42 / 75] + .05
= .0056 +.05
= 0.0556 same as 5.56%
B)SML approach
Cost of equity = Rf +Beta (Rm-Rf)
= 5.8+ 1.25 (12 -5.8 )
= 5.8+ 1.25 *6.2
= 5.8 + 7.75
= 13.55%
Answer:
A) Q=17
B) $80
C) 518
Explanation:
C(Q) = 60 + 12Q + 2Q2
and its MC = 12+ 4Q
a.How much output should the firm produce in the short run?
Put P = MC and solve for Q
P=MC
80=12+4Q
4Q=68
Divide both sides of the equation by 4
Q=17
b.What price should the firm charge in the short-run? $80
c.What are the firm’s short-run profits?
Hint:
Profit=Total Revenue-Total CostTotal Revenue=$80x17=1360
TotalCost=60+12x17+2(17)2=60+204+578=842
Profit=1360-842=518
Answer: 1. Portfolio
2. • Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. All of the above
Explanation:
1. Since the wealthy French citizen buys $2 million worth of stock issued by an American corporation and the American firm uses the proceeds for a factory expansion, then this is considered to be an example of foreign portfolio investment in the United States.
2. The policies that are consistent with the goal of increasing productivity and growth in developing countries include:
• Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. The possible outcomes of rapid population growth include a reduction in the human capital per worker, a reduction in capital per worker and an increase in technological knowledge. Therefore, the answer is all of the above.