Business, 19.12.2019 06:31 theamandawhite
Aconstant cost, perfectly competitive market is in long-run equilibrium. at present, there are1,000 firms each producing 400 units of output. the price of the good is $60. now suppose there isa sudden increase in demand for the industryĘšs product which causes the price of the good to riseto $64. in the new long-run equilibrium, how will the average total cost of producing the goodcompare to what it was before the price of the good rose?
a) the average total cost will be higher than it was before the price increase because ofdiseconomies of scale arising from the increased demand.
b) the average total cost will be lower than it was before the price increase because ofeconomies of scale.
c) the average total cost will be the same as it was before the price increase.
d) the average total cost will be higher than it was before the price increase since the increase indemand will drive up input prices.
Answers: 2
Business, 22.06.2019 10:50
You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the projectâs life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.
Answers: 3
Business, 22.06.2019 11:40
The following pertains to smoke, inc.âs investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smokeâs net income for the year ended december 31, year 3?
Answers: 3
Business, 22.06.2019 12:20
Consider 8.5 percent swiss franc/u.s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00
Answers: 2
Business, 22.06.2019 19:20
Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is:
Answers: 1
Aconstant cost, perfectly competitive market is in long-run equilibrium. at present, there are1,000...
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