Answer:
Lerner index for Botox = 0.9
Explanation:
The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P
Lerner index for Botox = ($15 - $1.50) / $15 = 0.9
0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.
The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.
Answer:
The aftertax salvage value of the machine is D) $10,134
Explanation:
Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.
Since taxes are based on the profit you make by selling something, our profit is:
Therefore, our taxes are:
So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:
Salvage Value of the Machine = $12,000 - $1,866?= $10,134
That is option D)
Best of luck.
Hey there!
Joe's response is called a counteroffer, which is just an offer that's made in response to an offer given by someone else.
Thie helps two people come to a consensus about an offer.
Hope this helps!
Answer:
(B) 40%
Explanation:
↓Q / ΔPrice = Price-elasicity
The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.
ΔPrice = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1
We know that price elasticity is 0.4
Now we can solve for the change in the quantity demanded:
↓Q/ 1 = 0.4
↓Q = 0.4 x 1 = 0.40 = 40%
The net present value would be zero.
Hope this helped! :)
