When you have a monopoly you have a product or service on the market with no competition. On the flip side, in a pure or perfect competition there are various competitors selling the same product or service as you. The main difference between these two are that a monopoly involves no competition at all while a pure competition involves a high level of competition. (the first choice)
The second choice is incorrect because it is harder to establish a product in a pure competition market because you are competing with other companies.
The third choice is incorrect because a monopoly refers to a company with a product or service and no competition whereas a pure competition refers to one with the same products or services.
The forth choice is incorrect because they can be present in various economy structures.
Solution:
Annual coupon payment of the bond is $80
At the beginning of the year, remaining maturity period is 2 years.
Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.
New price of the bond = present value of the final coupon payment + present value of the maturity amount.
New price of the bond =
where, r is the yield to maturity at the end of the year.
Substitute 0.06 for r in the above equation,
Therefore new price of the bond is =
=
= $ 1010.87
Calculating the rate of return of the bond as
= 0.09887
Therefore, the rate of return on the bond is 9.887%
≈ 10 %
Answer:
the weekly grocery bill in 4 years is $486.2025
Explanation:
The computation of the weekly grocery bill in four years is shown below:
= Estimated amount × (1 + rate of interest)^number of years
= $400 × (1 + 0.05)^4
= $400 × 1.21550625
= $486.2025
hence, the weekly grocery bill in 4 years is $486.2025
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
50%
Explanation:
Here is important to know that when we have the inflation rate (1,50% in this case) this indicator is enough to get the effect of the prices in an economy and get the nominal GDP affected by prices, so if the price level is 1,50% after the comma we have the average of the growth.
Answer:
Effect on income= $68,580 increase
Explanation:
<u>Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.</u>
<u>First, we need to calculate the unitary cost:</u>
Unitary cost= 46.1 + 8.8 + 1.8 + 1.3
Unitary cost= $58
<u>Now, the effect on the income of accepting the offer:</u>
Effect on income= 2,700*(83.4 - 58)
Effect on income= $68,580 increase