Answer:
The correct answer are the option B and C: Foreign competition would wipe out domestic production and producers are driven by the profit motive to work against competition.
Explanation:
First of all, the huge companies, and that includes the foreign competition, will always wipe out the small ones and that situation will definitely impact in the domestic economy of a country by leaving without work to the other enterprises and their employees, also by increasing prices and obligating to the customers to buy them due to their power in the industry and more. That is why, government regulation is obviously needed in the free-market system because if there is not, then the leader organization will do as they please with the market.
Secondly, the companies are lucrative organization and therefore that the most important thing that they care about is to make money by producing goods or giving services to the community that need it. That is why, if there is not government then the most powerful companies would try to eliminate the small ones by taking all their consumers away.
Answer:
$ 48,000
$3,200
Explanation:
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.
Reason -
Business income = 120,000×40%
=
= $48,000
⇒Business income = $48,000
Tax-exempt = 8,000×40%
=
= $3,200
⇒Tax-exempt = $3,200
Winston Baker will put $25,000 into his sister's new spa. In six years, he will have tripled his investment. Winston has been promised a 20% rate of return.
<h3>What is meant by Rate of returns?</h3>
- The annual rate of return is the percentage change in an investment's value. For instance, if you assume a 10% annual rate of return, you are assuming that the value of your investment will rise by 10% each year.
- A rate of return (RoR) is the net gain or loss of an investment over a given time period expressed as a percentage of the initial cost of the investment.
- When you calculate the rate of return, you are calculating the percentage change from the beginning to the end of the period. ROI is calculated by subtracting the initial cost of the investment from the final value, dividing the result by the cost of the investment, and finally multiplying it by 100.
To learn more about Rate of returns, refer to:
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Answer: Option (c) is correct.
Explanation:
Given that,
Alternatives for a person if he do not attend his neighbor's barbecue:
(1) Watch television with some friends = he value this at $17
(2) Read a good novel = he value this at $14
(3) Go in to work = he could earn $16 during the barbecue
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore, the opportunity cost of going to his neighbor's barbecue is the enjoyment he get from watching television with some friends because this is the highest valued alternative forfeited.
Answer:
Case 1 = $420 million
Case 2 = $280 million
Case 3 = $350 million
Explanation:
As per the data given in the question,
Annual value by one distributor = $420 million per year
Annual value by two distributor = $560 million per year
Case 1)
The marginal value of first distributor is more than second
So when negotiating the value, it is = $560 million - $420 million = $140 million
and this value would be distribute between both. so each will get = $140 million / 2 = $70 million
and you would expect to capture $420 million of this deal
Case 2)
As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million
Case 3)
In this case marginal amount of contact = $560 million - $140 million = $420 million
and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered
and you would expect to grab the remaining amount = $560 million - $210 million
= $350 million