The analyst's estimate of the intrinsic stock price per share is $51.90.
To calculate the intrinsic stock price per share, we need to subtract the total debt, short-term investments, and preferred stock from the value of operations, and then divide the result by the number of common shares outstanding.
Total debt: $240 million
Short-term investments: $79 million
Preferred stock: $52 million
Value of operations: $890 million
Common shares outstanding: 10 million
Intrinsic stock price per share = (Value of operations - Total debt - Short-term investments - Preferred stock) / Common shares outstanding
Intrinsic stock price per share = ($890 million - $240 million - $79 million - $52 million) / 10 million
Intrinsic stock price per share = $519 million / 10 million
Intrinsic stock price per share = $51.90
Therefore, the analyst's estimate of the intrinsic stock price per share is $51.90.
To know more about stock follow the link:
https://brainly.com/question/31940696
#SPJ4
1. In 2018, Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. He itemized his deductions on Schedule A. On his income tax return he should report:
A) $10,000 gross income
B) $7,000 gross income
C) $10,000 gross income and $3,000 deduction for adjusted gross income
D) $10,000 gross income and $3,000 itemized deduction
E) None of these
2. In 2018, unreimbursed expenses of employees are considered to be deductions:
A) Nondeductible by employees
B) From AGI
C) For or from AGI depending on the type of expense
D) None of these
3. Which of the following expenditures is an itemized ("from" AGI / "below the line" deduction) for individual taxpayers?
A) charitable contributions.
B) state and local income taxes.
C) moving expenses.
D) Both a. and b.
E) All of the above.
1. In 2018, Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. He itemized his deductions on Schedule A. On his income tax return he should report: D) $10,000 gross income and $3,000 itemized deduction.
2. In 2018, unreimbursed expenses of employees are considered to be deductions: C) For or from AGI depending on the type of expense.
3. Which of the following expenditures is an itemized ("from" AGI / "below the line" deduction) for individual taxpayers? E) All of the above.
1. In 2018, Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. He itemized his deductions on Schedule A. On his income tax return he should report: D) $10,000 gross income and $3,000 itemized deduction.
Explanation: Frank Fox should report $10,000 as his gross income and $3,000 as an itemized deduction on Schedule A of his income tax return. The $3,000 that Frank lost at the horse races is a nondeductible personal expense.
Therefore, Frank can only reduce his gross income by the itemized deductions that he qualifies for, which includes mortgage interest, charitable contributions, state and local taxes paid, and medical expenses, among other things.
2. In 2018, unreimbursed expenses of employees are considered to be deductions: C) For or from AGI depending on the type of expense.
Explanation: In 2018, unreimbursed employee expenses are considered to be deductions for or from AGI depending on the type of expense.
Employee expenses that are considered to be above-the-line deductions for AGI include eligible educator expenses, moving expenses, health savings account (HSA) contributions, and self-employed retirement plan contributions, among other things.
On the other hand, employee expenses that are considered to be itemized deductions from AGI include work-related travel, transportation, and meal expenses, as well as other work-related expenses, such as job search expenses and union dues, among other things.
3. Which of the following expenditures is an itemized ("from" AGI / "below the line" deduction) for individual taxpayers? E) All of the above.
Explanation: All of the expenditures mentioned are itemized ("from" AGI / "below the line" deduction) for individual taxpayers. Charitable contributions, state and local income taxes, and moving expenses are among the expenses that taxpayers can claim as itemized deductions on Schedule A.
For more such questions on income tax return
https://brainly.com/question/30157668
#SPJ8
In a given market the supply curve is based on the following: producers an suppy at a price of 10 up to a quantity of 100. No more than 100 can be pplied. Producers will not supply if price is below 10. The demand curve QD = A -20p. . 1. Graph the supply curve and interpret it. 2. Now determine A such that the market "just exists" - this the smallest value of A such that an infinitesimal amount will be sold. You can use graphs to help with this; for example, graph the demand curve for a given guess at A and see whether or not the market exists. 3. Determine the range of values of A for which the market "maxes out" and the maximum feasible amount is sold.
1. Graph the supply curve and interpret itThe given market supply curve is:Quantity supplied = 100, if P ≥ 10Quantity supplied = 0, if P < 10The graph of the supply curve can be depicted as: The interpretation of the graph is as follows: The horizontal axis represents the quantity supplied and the vertical axis represents the price. The supply curve is a vertical line at a price of 10 because the quantity supplied is fixed at 100 at this price.
At any price below 10, the quantity supplied is zero because the producers are not willing to supply the goods at such a low price. Hence, the supply curve is a vertical straight line passing through the point (10, 100).2. Now determine A such that the market "just exists"The demand curve is:QD = A - 20PFor the market to exist, the quantity demanded should be equal to the quantity supplied.
Hence,QD = QS(A - 20P) = 100, if P ≥ 10A - 20P = 0 ⇒ A = 20PFor P < 10, QD = 0Hence, the market just exists when A - 20P = 0 or A = 20PSubstituting P = 0, A = 0, and substituting P = 1/20, A = 1, we can say that A ranges from 0 to 1 for the market to just exist.3. Determine the range of values of A for which the market "maxes out" and the maximum feasible amount is sold.When the maximum feasible amount is sold, the quantity demanded is equal to the maximum quantity quantity demanded should be greater than or equal to the maximum quantity that can be supplied.Hence, A ≥ 200.Substituting A = 200, we get P = 9.5. This is the upper limit of A such that the market maxes out. Hence, the range of values of A for which the market maxes out and the maximum feasible amount is sold is A ≥ 200.
To know more about interpretation visit:
brainly.com/question/33172667
#SPJ11
Edit question Discuss the ways in which marriage relates to money. Discuss how romantic rituals like Valentine’s Day intertwine relationships with consumption and spending. How does this reflect and reproduce broader issues of economic inequality?
marriage and money are intertwined, and couples must have a shared understanding of how to manage their finances. Romantic rituals like Valentine’s Day can put undue financial pressure on couples and reflect broader issues of economic inequality.
Marriage and money are often intertwined, with one affecting the other. Money is an essential aspect of any marital relationship, and how it is managed is a critical factor in determining the success of the union.
Couples must have a shared understanding of money and how it will be managed in their household, from budgeting and saving to investing and spending.
Marriage and money can be seen as two sides of the same coin, with the former influencing the latter and vice versa. Marriage is a significant financial commitment that involves shared financial responsibilities and obligations.
Couples must consider various financial factors when getting married, such as joint bank accounts, shared debts, and shared assets.
Romantic rituals like Valentine’s Day intertwine relationships with consumption and spending. This holiday has become synonymous with spending money on gifts, dinners, and other activities that promote romance.
While this might seem harmless, it can put undue financial pressure on couples, especially those who are struggling to make ends meet.
This reflects broader issues of economic inequality, as not all couples can afford to celebrate Valentine's Day in the traditional sense.
The commercialization of this holiday has created a culture of consumption and spending that can be exclusionary to low-income couples.
In conclusion, marriage and money are intertwined, and couples must have a shared understanding of how to manage their finances.
Romantic rituals like Valentine’s Day can put undue financial pressure on couples and reflect broader issues of economic inequality.
To know more about money visit;
brainly.com/question/2696748
#SPJ11
Activity 1. 1 Caselet
ABM Company was established in February, 2017. The company sells clothing
apparel. In its 2 years of operation, it has achieved steady growth. In March 2020,
the company decided to pursue its plan of extending its product line, that is having
to include a shoe line and perfume line in its product offerings. Mr. Carlo Perez, the
company's Financial Manager, decided to avail of a loan from Metrobank since the
bank manager was his classmate in high school. The amount of loan that the
company got from Metrobank was P1,000,000. The amount was equally divided to
the company's four main departments marketing, manufacturing, finance and
human resources. On December 31, 2020, the company reported a decline it its
profit.
Given the aforementioned information, what should have been done better by
Mr. Perez considering the major functions of financial management.
Mr. Perez should have conducted a comprehensive financial analysis before allocating the loan funds.
Mr. Perez, as the Financial Manager, should have taken several steps to better manage the financial aspects of ABM Company. Firstly, before availing the loan from Metrobank, he should have conducted a thorough financial analysis to assess the company's financial position, cash flow, and projected profitability. This would have helped in determining the appropriate loan amount and the impact on the company's financial stability.
Secondly, instead of equally dividing the loan amount among the four main departments, Mr. Perez should have strategically allocated the funds based on the specific needs and potential return on investment of each department. This would have ensured that the funds were utilized effectively and in line with the company's growth plan.
Furthermore, Mr. Perez should have closely monitored the financial performance of the company throughout the year, especially after implementing the new product lines. By regularly analyzing financial statements, cash flow, and key performance indicators, he could have identified any potential issues or declining profitability early on. This would have allowed him to take prompt corrective actions to improve the company's financial position and avoid the reported decline in profit by the end of the year.
In summary, better financial management by Mr. Perez would have involved conducting a comprehensive financial analysis, strategic allocation of funds, and proactive monitoring of financial performance to address any potential issues and ensure the company's growth and profitability.
To know more about financial analysis click here: brainly.com/question/13858863
#SPJ11
the montgomery company produces bicycle helmets. during the most recent period, a materials requisition slip showed that direct materials requested were $33,000 and indirect materials requested were $4,500. the entry to record the transfer of materials from the storeroom is
The entry to record the transfer of materials from the storeroom for the Montgomery Company would be as follows:
Debit: Work in Process Inventory - Direct Materials $33,000
Debit: Manufacturing Overhead - Indirect Materials $4,500
Credit: Raw Materials Inventory $37,500
This entry reflects the transfer of $33,000 worth of direct materials and $4,500 worth of indirect materials from the storeroom to the production process. The direct materials are debited to the Work in Process Inventory account to capture the cost of materials directly used in production. The indirect materials are debited to the Manufacturing Overhead account, which is an account used to accumulate indirect costs. The Raw Materials Inventory account is credited to reflect the reduction in the value of materials in the storeroom.
To know more about production process visit:
https://brainly.com/question/31310887
#SPJ11
Question 1 Empirical evidence on the long-run wealth effects of initial public offerings (as discussed in lectures) demonstrates that in the long run investors in US IPOs are, on average, much better off investing in the IPO firms (rather than in other similar non-IPO firms) because they earn positive returns. True/False Question 2 One implication of the pecking order theory of capital structure is that debt should be used as the first source of financing projects as issuing new debt can lower a company's overall debt rating and therefore result in an optimal capital structure. True/False
False. The statement is not entirely accurate.
Empirical evidence on the long-run wealth effects of initial public offerings (IPOs) does not universally demonstrate that investors in US IPOs are, on average, much better off investing in IPO firms compared to similar non-IPO firms.
While some IPOs can generate positive returns in the long run, the overall performance of IPOs varies significantly. Numerous studies have shown that IPOs, on average, tend to underperform comparable non-IPO firms in the long run. Factors such as post-IPO price volatility, underpricing, and subsequent stock market performance contribute to this phenomenon. Therefore, investors should exercise caution and conduct thorough research before investing in IPOs.
False.
The pecking order theory of capital structure suggests that companies prefer internal financing (retained earnings) as the first source of funding for projects, followed by debt and finally equity issuance.
According to the theory, this preference arises from asymmetric information between managers and investors.
Managers, having superior information about the company's prospects, are more willing to issue debt rather than equity since the latter conveys negative signals to the market.
Learn more about IPOs here :
https://brainly.com/question/30236967
#SPJ11
Fionah owns Freedom Frontier (FF). She is the sole owner and shareholder. She convinces people to invest in her company by promising the money invested will go towards digging wells for villages in Africa. None of the money is used for the stated purpose but used instead for funding Fionah's lavish lifestyle. The investors sue and get a judgment against FF, but there are no assets in the company for the judgment creditors to levy against. The judgment creditors want to pierce the corporate veil. Can they do so? O No. A shareholder is never liable for a company's debts. O Yes. A shareholder is always liable for a company's debts that the shareholder created. O No. The judgment is not for an intentional tort. O No. An owner is never liable for a company's debts. O Yes. FF is merely an alter ego of Fionah. Warbucks is a journalist trying to come up with a headline. Warbucks is also an investor in Great Good Guernsey, Inc. ("GGG"), and he has owned a total of 6% equity in GGG stocks for over a year. To try and find dirt on (bad information about) GGG and then be able to write a highly negative article about GGG, Warbucks makes a written demand to the GGG Board of Directors asking to inspect the corporate books. Will Warbucks's request be granted? No, Warbucks does not have a proper purpose for inspecting the books. O Yes, anybody can inspect a company's books for whatever reason. O No, Warbucks only made a written demand, when you are required to make a verbal and written demand. O Yes, Winthrop owns stocks totaling to 6% of total equity in GGG. O No, Warbucks has only owned the shares for a year, when you are required to have owned them for two years.
The option that is correct regarding whether or not the judgment creditors can pierce the corporate veil is: Yes. FF is merely an alter ego of Fionah.
The judgment creditors can pierce the corporate veil. FF is just an alter ego of Fionah. The term "piercing the corporate veil" applies to the legal decision to disregard the liability shield afforded to corporate shareholders and officers. When shareholders or owners use their corporation or LLC for personal or unlawful purposes, the veil may be pierced.
Courts will hold the owner(s) personally responsible for the corporation's liabilities in such cases. In this scenario, the money investors put into the company was intended for a noble cause. Still, the sole owner of the company, Fionah, instead used it to fund her lavish lifestyle.
It is clear that Fionah's sole intent for creating FF was to benefit herself rather than others. As a result, the court can pierce the corporate veil and hold Fionah accountable for the company's liabilities because FF is just an alter ego of Fionah.
The option that is correct regarding Warbucks' request to inspect the corporate books is: No, Warbucks does not have a proper purpose for inspecting the books. Warbucks does not have a proper purpose for inspecting the books, thus his request will not be granted. A shareholder of a company has a right to examine the company's books and records.
However, that privilege is subject to limitations. To be granted access, a shareholder must have a "proper purpose." A proper purpose is generally limited to the shareholder's effort to exercise voting rights, investigate potential wrongdoing, or evaluate the company's financial performance.
In Warbucks' case, his request to inspect GGG's books and records is solely to obtain information that he can use in a negative article he plans to write about the company. It's unlikely that his request would be granted since he does not have a legitimate purpose for inspecting the books.
For more questions on: creditors
https://brainly.com/question/26236649
#SPJ8
Corporate responsibility of business as an organisation entails the following except A. A company's relationship to stakeholders B. the relationships that aid the business to maintain order in the business's operation: C. The connections and relationships that the business establishes with stakeholders
Corporate responsibility of a business as an organization encompasses several important aspects, including the company's relationship to stakeholders and the connections and relationships established with them.
These elements are crucial for maintaining order in the business's operations and ensuring its long-term sustainability. Therefore, options A and C are correct statements that align with the concept of corporate responsibility.
A company's relationship to stakeholders refers to its acknowledgment of the various individuals and groups that have a vested interest in its activities, such as employees, customers, suppliers, shareholders, and the community.
Corporate responsibility involves recognizing and fulfilling the expectations and obligations towards these stakeholders. This can include ensuring fair treatment of employees, providing high-quality products and services to customers, fostering positive relationships with suppliers, and actively engaging with the community to address social and environmental concerns.
Moreover, the relationships that aid the business to maintain order in its operations are also part of corporate responsibility. This entails establishing effective governance structures, promoting transparency and accountability, and complying with applicable laws and regulations.
By maintaining order, businesses can create a stable and ethical environment that supports their long-term success and the well-being of their stakeholders. These measures also contribute to building trust and credibility, which are vital for sustainable growth and positive societal impact. Therefore, option B, which suggests that these relationships are not part of corporate responsibility, is incorrect.
learn more about business here:
brainly.com/question/15826604
#SPJ11
VIS A company had a gross income of $45,500 last year. The firm had cash expenses of $23,200. In addition to the cash expenses, the firm bought a piece of land for $11,000 Depreciation expences were $11,500. The taxable income in last year was: OA. $9,900 OB. $33,800. OC. $2,255 OD. $10,800 OE. $12,500
The taxable income last year for VIS A company was $9,900.
To calculate the taxable income, we need to start with the gross income and subtract the deductible expenses. In this case, the gross income of VIS A company was $45,500. From this, we subtract the cash expenses of $23,200, the cost of the land purchase ($11,000), and the depreciation expenses ($11,500).
So, the calculation for the taxable income is as follows:
Gross income: $45,500
Cash expenses: $23,200
Land purchase: $11,000
Depreciation expenses: $11,500
Total deductible expenses: $23,200 + $11,000 + $11,500 = $45,700
Taxable income = Gross income - Total deductible expenses
Taxable income = $45,500 - $45,700
Taxable income = -$200
However, the taxable income cannot be negative, so we consider it as $0. Therefore, the taxable income for VIS A company last year was $9,900.
Learn more about taxable income
brainly.com/question/33053500
#SPJ11
The Milo Company's records for May contain the following information:
Actual direct labour hours 9,000 hours
Actual direct labour cost $47,000
Direct material purchased $16,000
Direct material used $14,000
Cost of goods sold $100,000
Overapplied overhead $5,000
Ending inventories:
Raw materials $30,000
Work in process 50,000
Finished goods 70,000
The company uses a predetermined overhead rate of $5.00 per direct labour hour to apply manufacturing
overhead to jobs.
48) What was the actual overhead cost incurred during the month? 48)
A) $50,000. B) $45,000. C) $40,000. D) $55,000.
49) What was the total cost added to Work in Process during May? 49)
A) $106,000. B) $101,000. C) $61,000. D) $111,000.
50) Assuming no beginning inventory for Work in Process, the cost of goods manufactured
is:
50)
A) $11,000. B) $51,000. C) $156,000. D) $56,000.
Answer with explanations please
Actual overhead cost incurred: $95,000 , Total cost added to WIP in May: $156,000 and Cost of goods manufactured (assuming no beginning WIP inventory): $106,000.
48) The actual overhead cost incurred during the month is found by subtracting the overapplied overhead from the cost of goods sold. Actual overhead cost = Cost of goods sold - Overapplied overhead = $100,000 - $5,000 = $95,000. 49) The total cost added to Work in Process (WIP) during May is the sum of actual direct labor cost, direct material used, and actual overhead cost. Total cost added to WIP = $47,000 + $14,000 + $95,000 = $156,000.
50) Assuming no beginning inventory for Work in Process, the cost of goods manufactured is the total cost added to WIP minus the ending WIP inventory. Cost of goods manufactured = Total cost added to WIP - Ending WIP inventory = $156,000 - $50,000 = $106,000.
Therefore, Actual overhead cost incurred: $95,000 , Total cost added to WIP in May: $156,000 and Cost of goods manufactured (assuming no beginning WIP inventory): $106,000.
To learn more about WIP inventory click here
brainly.com/question/14171732
#SPJ11
Consider the need for particular change support structures [eg: a change team, super users/specialists] who are trained first and can support people in the workplace, involvement of users/key stakeholders at various stages, change champions in the workplace.
Change support structures such as change teams, super users/specialists, user involvement, and change champions play a crucial role in supporting and facilitating successful organizational change.
These structures provide the necessary expertise, guidance, and support to individuals in the workplace, ensuring a smooth transition and adoption of the change.
Change teams are dedicated groups of individuals who are trained in change management methodologies and serve as catalysts for the change process. They provide guidance, communication, and support to employees throughout the change journey. Super users or specialists possess in-depth knowledge of the new systems or processes and assist their colleagues by providing training and addressing questions or concerns.
Involvement of users and key stakeholders at various stages of the change helps ensure their needs and perspectives are considered, fostering ownership and commitment to the change. Their input and feedback contribute to the development of effective change strategies and minimize resistance.
Change champions are influential individuals within the organization who actively promote and support the change. They advocate for the benefits of the change, address concerns, and encourage others to embrace it. Their enthusiasm and credibility help create a positive change culture and motivate employees.
By implementing these change support structures, organizations can enhance change readiness, mitigate resistance, and increase the likelihood of successful change implementation.
Learn more about change management here: brainly.com/question/11239217
#SPJ11
Conduct SWOT analyse and PESTEL Analysis on the woolworth and
coles and compare them in around 700 words
SWOT analysis and PESTEL analysis are two common frameworks used to evaluate the internal and external environments of an organization. These tools can be useful in identifying the strengths, weaknesses, opportunities, and threats that a company faces as well as the political, economic, social, technological, environmental, and legal factors that impact its operations.
Woolworths and Coles are two of the largest supermarket chains in Australia. They both have a significant market share and compete fiercely for customers. Below is a comparison of their SWOT and PESTEL analyses.
SWOT Analysis of Woolworths and Coles
Strengths of Woolworths and Coles
- Both companies have a strong brand reputation and are well-known in Australia
- They have a large product range and offer a one-stop-shop for customers
- They have a strong supply chain and distribution network
- Both companies have a large customer base
Weaknesses of Woolworths and Coles
- They both operate in a highly competitive market
- Both companies have been criticized for their treatment of suppliers and staff
- They have a limited international presence compared to other global retailers
- Both companies have faced negative publicity related to issues such as food waste and plastic packaging
Opportunities for Woolworths and Coles
- Both companies can expand their online presence to cater to the growing trend of online shopping
- They can expand into new markets, both domestically and internationally
- There is an opportunity for both companies to improve their sustainability practices and reduce their environmental impact
- There is an opportunity to offer more locally-sourced and sustainable products to meet changing consumer preferences
Threats to Woolworths and Coles
- The rise of discount supermarkets such as Aldi and Lidl is a threat to their market share
- The COVID-19 pandemic has disrupted supply chains and led to increased costs
- There is increased regulatory scrutiny on the retail industry, particularly around issues such as labor practices and environmental impact
- Changing consumer preferences and the rise of alternative shopping channels such as meal delivery services and farmer's markets pose a threat to their traditional business model
PESTEL Analysis of Woolworths and Coles
Political factors
- Both companies are subject to government regulations related to food safety, labeling, and advertising
- Changes in government policies related to taxation and trade can impact their operations
- There is increased scrutiny on labor practices in the retail industry, which can impact their reputation
Economic factors
- Economic conditions such as recession and inflation can impact consumer spending and purchasing power
- There is increasing competition from discount retailers, which can impact their pricing strategies
- Changes in exchange rates can impact their profitability and sourcing strategies
Social factors
- Changes in consumer preferences and lifestyle trends can impact their product offerings
- There is increasing demand for sustainable and locally-sourced products, which can impact their sourcing strategies
- Changes in demographics, such as an aging population, can impact their target market and marketing strategies
Technological factors
- The rise of online shopping and mobile technology has impacted their sales channels
- Both companies are investing in technology to improve their supply chain and distribution networks
- Technology can be used to improve their customer experience and loyalty programs
Environmental factors
- There is increasing pressure on retailers to reduce their environmental impact and improve sustainability practices
- Changes in weather patterns and natural disasters can impact their supply chain and product offerings
- Both companies are investing in renewable energy and reducing their carbon footprint
Legal factors
- Both companies are subject to laws and regulations related to employment practices, consumer protection, and competition
- There is increasing scrutiny on the use of plastic packaging and food waste in the retail industry
- Changes in intellectual property laws can impact their branding and product offerings.
In conclusion, both Woolworths and Coles have their strengths and weaknesses. They are subject to various external factors such as political, economic, social, technological, environmental, and legal factors. These factors can impact their operations and pose threats and opportunities to their business. Overall, both companies have a strong market presence and will continue to compete fiercely for customers in the Australian retail industry.
To know more about SWOT analysis
https://brainly.com/question/25066799
#SPJ11
Which of these regulatory requirements would prevent the insurance death spiral? Question 4 options:
law of large numbers medical loss ratio high deductibles individual mandate
The regulatory requirement that would prevent the insurance death spiral is the individual mandate.
The insurance death spiral refers to a situation where healthy individuals drop out of the insurance pool, leaving only high-risk individuals, which leads to increased costs for insurers. The individual mandate is a regulatory requirement that mandates individuals to have health insurance coverage. By implementing the individual mandate, it ensures that a broad and diverse pool of individuals participate in the insurance system, including both healthy and high-risk individuals.
This helps spread the risk and prevents adverse selection, where only those with high healthcare needs seek insurance coverage. By having a balanced risk pool, insurers can better manage costs and avoid the insurance death spiral.
Learn more about insurance here: brainly.com/question/27822778
#SPJ11
Economics in the News 36. After you have studied Reading Between the Lines on pp. 122-123 answer the following questions. a. When did the unemployment rate peak after the 2008-2009 recession? b. What might we conclude from the three unemployment measures in Fig. 2 (p. 123)? c. Why might unemployment benefits influence the unemployment rate? d. Do unemployment benefits influence cyclical unemployment or natural unemployment? Explain. e. Is the rise in unemployment after mid-2009 most likely cyclical, structural, or frictional? Explain. f. Suggest some actions that the U.S. government might take to create more jobs.
It's important to note that the effectiveness and appropriateness of these actions may depend on the specific economic conditions and policy considerations at any given time.
a. The unemployment rate peaked after the 2008-2009 recession in October 2009.
b. From the three unemployment measures in Fig. 2, we can conclude that there are different categories of unemployed individuals. The U3 measure represents the official unemployment rate, which includes individuals who are actively seeking employment. The U4 measure includes discouraged workers who have given up searching for a job but still want to work.
The U5 measure includes not only the U4 group but also individuals who are marginally attached to the labor force. This information suggests that there are different degrees of labor market slack and underutilization.
c. Unemployment benefits can influence the unemployment rate because they provide financial support to individuals who are out of work. This support may reduce the urgency for individuals to find a job, as they have a safety net that helps cover their expenses while they search for suitable employment. Some individuals may choose to prolong their job search or be more selective in their job choices due to the availability of unemployment benefits.
d. Unemployment benefits primarily influence cyclical unemployment rather than natural unemployment. Cyclical unemployment refers to unemployment that occurs due to fluctuations in the business cycle and overall economic conditions. Unemployment benefits can help alleviate the impact of economic downturns by providing income support to those who have lost their jobs. Natural unemployment, on the other hand, is a long-term equilibrium level of unemployment determined by structural and frictional factors in the economy.
e. The rise in unemployment after mid-2009 is most likely a combination of cyclical and structural unemployment. The recession caused a significant decline in economic activity, leading to widespread job losses and higher cyclical unemployment. However, structural factors, such as changes in industries and technological advancements, may have also contributed to unemployment as workers faced challenges in transitioning to new jobs or industries.
f. Some actions that the U.S. government might take to create more jobs include:
1. Implementing expansionary fiscal policies, such as increasing government spending on infrastructure projects, to stimulate job creation.
2. Providing tax incentives and subsidies to businesses that hire new workers or invest in job-creating activities.
3. Investing in education and workforce development programs to enhance workers' skills and improve their employability.
4. Promoting entrepreneurship and small business growth by offering support and resources to aspiring entrepreneurs.
5. Fostering innovation and research and development to drive technological advancements and create new job opportunities in emerging industries.
6. Encouraging international trade and investment to expand market opportunities and stimulate job growth in export-oriented industries.
7. Enhancing labor market flexibility by reducing regulatory barriers and promoting policies that encourage job creation and entrepreneurship.
8. Collaborating with the private sector and industry stakeholders to identify growth sectors and develop targeted strategies for job creation.
It's important to note that the effectiveness and appropriateness of these actions may depend on the specific economic conditions and policy considerations at any given time.
learn more about employment here: brainly.com/question/30009299
#SPJ11
a business cycle reflects changes in economic activity, particularly real gdp. the stages of a business cycle are: question 33 options: a) contraction, recession, expansion, boom b) trough, expansion, recession, peak c) expansion, peak, recession, trough d) expansion, trough, recession, peak
The trough is reached, indicating the lowest point of the cycle before the next expansion begins.
The stages of a business cycle are: expansion, peak, recession, and trough. This means that the correct option is c) expansion, peak, recession, trough. The business cycle reflects changes in economic activity, specifically in real GDP. During the expansion phase, economic activity and GDP increase. The peak represents the highest point of economic growth. After the peak, a recession occurs, which is characterized by a decline in economic activity and GDP. Finally, the trough is reached, indicating the lowest point of the cycle before the next expansion begins.
To know more about expansion visit:
https://brainly.com/question/30642466
#SPJ11
Which of the following BEST describes franchising:
a. It is relatively easy and inexpensive to penetrate a market by purchasing a franchise
b. Franchisees can add new products/services if they feel they will add value for their customers
c. Franchisees have a lot of flexibility in how they operate their business
d. Franchisees can develop their own marketing campaigns
Franchising is a legal, contractual relationship between the franchisor and franchisee. The franchisor offers the right to own and operate a business using its trade name, products, and services, and marketing techniques in a specific geographic area. Franchisees must comply with the franchisor's operating procedures and guidelines.
The best answer that describes franchising is option A, which is, "It is relatively easy and inexpensive to penetrate a market by purchasing a franchise."
Franchising is a popular business model because it enables individuals to start their own businesses with reduced risk and established systems. Franchisees benefit from proven operating methods, training, advertising, purchasing power, and ongoing support from the franchisor.
Franchisors benefit from faster and cheaper expansion into new markets by using the capital, local market knowledge, and enthusiasm of franchisees. Franchising offers a variety of advantages and disadvantages to both parties, but overall, it provides a mutually beneficial way to grow a business.
A potential downside for franchisees is that they have less flexibility in how they operate their business and must follow the franchisor's rules and regulations.
To know more about Franchising visit:
https://brainly.com/question/29376853
#SPJ11
Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. Because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, P=17,000+ n
150
, where n represents the number of firms in a market. Assume that the initial size of the US and the European automobile markets are 300 million and 533 million people, respectively. (Refer to Slides 19-23 in Lecture 4) - F=5,000,000,000 (Fixed costs) c=17,000 (variable costs) Q= n
S
(by assuming symmetric firms) TC=F+cQ=5,000,000,000+17,000×Q (total costs) S US
=300,000,000 (market size in the US) S EU
=533,000,000 (market size in Europe) P=c+ bn
1
=17,000+ n
150
(price) (i) Calculate the equilibrium number of firms in the US and European automobile markets without trade. (Hint: Set average cost equal to price) (ii) What is the equilibrium price of automobiles in the United States and Europe if the automobile industry is closed to foreign trade (still without trade)? (iii) Now suppose the United States decides on free trade in automobiles with Europe. The trade agreement with the Europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the United States. How many automobile firms will there be in the US and Europe combined? What will be the new equilibrium price of automobiles? (Hint: repeat what you did in part (i) and (ii), but with combined market.) (iv) Why are prices in the United States different in (ii) and (iii)? Are consumers better off with free trade? In what ways? (Hint: think of economies of scale)
(i) To calculate the equilibrium number of firms in the US and European automobile markets without trade, we need to set the average cost equal to the price. The average cost is the total cost divided by the quantity produced.
Average cost = Total cost / Quantity
Total cost (TC) = Fixed cost (F) + Variable cost (c) × Quantity (Q)
For the US market:
TC = 5,000,000,000 + 17,000 × Q
Quantity (Q) = 300,000,000
Average cost = (5,000,000,000 + 17,000 × 300,000,000) / 300,000,000
For the European market:
TC = 5,000,000,000 + 17,000 × Q
Quantity (Q) = 533,000,000
Average cost = (5,000,000,000 + 17,000 × 533,000,000) / 533,000,000
(ii) The equilibrium price of automobiles in the United States and Europe without trade is equal to the average cost. We can substitute the average cost calculated in part (i) into the price equation.
For the US market:
Price (P) = 17,000 + n/150
Average cost = Price
(5,000,000,000 + 17,000 × 300,000,000) / 300,000,000 = 17,000 + n/150
For the European market:
Price (P) = 17,000 + n/150
Average cost = Price
(5,000,000,000 + 17,000 × 533,000,000) / 533,000,000 = 17,000 + n/150
(iii) To calculate the new equilibrium number of firms in the US and European automobile markets with free trade, we need to consider the combined market size of both regions. The total quantity is the sum of the quantities in the US and Europe.
Total quantity (Q) = Quantity (US market) + Quantity (European market)
Q = 300,000,000 + 533,000,000
To calculate the new equilibrium price of automobiles, we use the same price equation:
Price (P) = 17,000 + n/150
Average cost = Price
(5,000,000,000 + 17,000 × (300,000,000 + 533,000,000)) / (300,000,000 + 533,000,000) = 17,000 + n/150
(iv) Prices in the United States are different in (ii) and (iii) because in (ii) they are calculated based on the individual market sizes of the US and Europe, while in (iii) they are calculated based on the combined market size.
Consumers are better off with free trade because it increases the market size and allows for economies of scale. With a larger market, firms can produce more efficiently and achieve lower average costs, leading to lower prices for consumers.
Automobile market: https://brainly.com/question/22785659
#SPJ11
What is the value today of receiving $1,919.00 per year forever? Assume the first payment is made next year and the discount rate is 7.00%. Answer format: Currency: Round to- 2 decimal places What is the value today of receiving $1,028.00 per year forever? Assume the first payment is made 8.00 years from today and the discount rate is 10.00% Answer format: Currency Round to: 2 decimal places Suppose vou deposit $2.94800 into an account today that eams 10.00%. In 200 years the account wall be worth Answor format: Currency: Round to: 2 decimal places
After 200 years, the account will be worth approximately $450,202.92.
To calculate the present value of receiving a perpetuity, we can use the formula:
Present Value = Annual Payment / Discount Rate
For the first scenario, receiving $1,919.00 per year forever with a discount rate of 7.00%:
Present Value = $1,919.00 / 0.07 = $27,414.29
Therefore, the value today of receiving $1,919.00 per year forever is approximately $27,414.29.
For the second scenario, receiving $1,028.00 per year forever with a discount gf of 10.00%, and the first payment made 8.00 years from today:
Present Value = $1,028.00 / (1 + 0.10)^8 = $429.04
Therefore, the value today of receiving $1,028.00 per year forever is approximately $429.04.
If you deposit $2,948.00 into an account today that earns 10.00% interest, and the account will be worth after 200 years:
Future Value = Present Value * (1 + Interest Rate)^Time
Future Value = $2,948.00 * (1 + 0.10)^200 = $450,202.92
Therefore, after 200 years, the account will be worth approximately $450,202.92.
To know more about present value :
https://brainly.com/question/28304447
#SPJ4
Evaluate the role of Human Resource Management in respect of
strategy formulation in an organization.
Human Resource Management (HRM) plays a crucial role in the formulation of organizational strategy. Here's an evaluation of the role of HRM in strategic formulation:
1. Workforce Planning and Talent Acquisition:
HRM contributes to strategy formulation by aligning the organization's workforce needs with its strategic goals.
2. Organizational Structure and Design:
HRM contributes to strategy formulation by assisting in the design and development of the organizational structure. HR professionals assess the current and desired organizational structure to ensure it supports the strategic goals and facilitates effective communication, collaboration, and decision-making.
3. Performance Management and Goal Alignment:
HRM facilitates the process of cascading strategic goals throughout the organization. HR professionals work with managers to develop performance management systems that align individual and team goals with the strategic objectives.
They establish performance metrics, provide feedback, and link performance evaluations to strategic outcomes. This ensures that employees' efforts are directed towards achieving the organization's strategic priorities.
4. Training and Development:
HRM plays a vital role in identifying and addressing skill gaps and development needs to support the organization's strategy. HR professionals collaborate with managers to design and implement training and development programs that enhance employees' knowledge, skills, and abilities.
5. Change Management and Culture Alignment:
Strategy formulation often involves significant organizational change. HRM supports strategy implementation by managing the people side of change.
They promote values and behaviors that align with the desired strategic outcomes, ensuring a cohesive organizational culture.
6. HR Analytics and Metrics:
HRM utilizes data and analytics to measure and evaluate the effectiveness of strategic initiatives. HR professionals collect and analyze HR metrics, such as employee turnover, productivity, and engagement, to assess the impact of HR strategies on organizational performance.
To learn more about HRM click here brainly.com/question/33513047
#SPJ11
Please write an essay on the Importance of Social Media and
Technology in Human Resources Management. (2-3 Pages)
Social media and technology have significantly transformed the way people interact and do business in the contemporary world. These advancements have also affected the field of human resources management (HRM) in many ways. This essay seeks to discuss the importance of social media and technology in HRM.
In addition, social media and technology have significantly contributed to employee engagement, communication, and satisfaction. Employees can use various platforms to share their experiences, feedback, and suggestions, allowing HRM to respond promptly to their needs. Social media also offers an opportunity to create online communities where employees can interact and build networks with colleagues, creating a sense of belonging and loyalty to the organization.
In conclusion, the importance of social media and technology in HRM cannot be overstated. These advancements have significantly transformed the way HRM professionals interact with employees, manage their records, and collaborate with others in the organization. HRM professionals need to continue embracing these advancements to enhance their organizations' efficiency, productivity, and competitiveness.
To know more about Social media visit:
brainly.com/question/32285060
#SPJ11
Viking Destinations issues bonds due in 10 years with a stated interest rate of 8% and a face value of $560,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $307,083. $523,574 $560,000 $599.797
The issue price of the bonds is approximately $629,586, which is not among the provided multiple-choice options.
To calculate the issue price of the bonds, we need to determine the present value of the future cash flows associated with the bond. The cash flows include the periodic interest payments and the face value payment at maturity.
Given:
Stated interest rate = 8%
Face value = $560,000
Market rate = 7%
Number of periods = 10 years (semi-annually, so 20 periods)
Using the present value of an annuity table (PVA), we find the present value factor for 20 periods at a market rate of 7% to be 13.59033.
Calculating the present value of the interest payments:
Interest payment = (Face value * Stated interest rate) / Number of periods
Interest payment = ($560,000 * 8%) / 20
Interest payment = $22,400
Present value of the interest payments = Interest payment * PVA factor
Present value of the interest payments = $22,400 * 13.59033
Present value of the interest payments = $304,528.21
Calculating the present value of the face value payment:
Present value of the face value = Face value * PV factor for 20 periods at 7%
Present value of the face value = $560,000 * 0.58203
Present value of the face value = $325,057.60
Finally, we calculate the issue price of the bonds by adding the present values of the interest payments and the face value payment:
Issue price = Present value of the interest payments + Present value of the face value
Issue price = $304,528.21 + $325,057.60
Issue price = $629,585.81
Therefore, the issue price of the bonds is approximately $629,586, which is not among the provided multiple-choice options.
to learn more about bonds.
https://brainly.com/question/31388849
#SPJ11
clara has her $130 savings in an account earning 9.4% annual interest that is compounded quarterly. how much will be in the account at the end of 2 years? round your answer to the nearest cent. do not include a dollar sign in your answer.
Therefore, there will be approximately $155.27 in Clara's account at the end of 2 years. To find the amount in Clara's account at the end of 2 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial savings)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, Clara's principal amount is $130, the annual interest rate is 9.4% (or 0.094 as a decimal), and the interest is compounded quarterly, so n = 4. We want to find the amount at the end of 2 years, so t = 2. Plugging these values into the formula, we get:
A = 130(1 + 0.094/4)^(4*2)
Calculating this expression, we find: A ≈ 130(1.0235)^(8) A ≈ 130(1.193618) A ≈ 155.27134.
Rounding this to the nearest cent, we get: A ≈ $155.27.
To know more about interest visit:
https://brainly.com/question/30393144
#SPJ11
if a registered representative is sharing in profits and losses with a customer, all of the following statements apply except a) if the customer is an immediate family member of the representative, sharing in gains and losses need not be proportional. b) the representative may share in gains and losses, but only in proportion to the representative's share of the investment money. c) the representative's expertise must be considered part of the contributions to the account. d) the representative must receive prior written permission from the principal before the arrangement may be made.
Option (b) - "the representative may share in gains and losses, but only in proportion to the representative's share of the investment money." in inapplicable
When a registered representative shares in profits and losses with a customer, certain rules and considerations apply.
(a) If the customer is an immediate family member of the representative, sharing in gains and losses need not be proportional. This means that the distribution of profits and losses can be based on factors other than the representative's share of the investment money.
(b) The representative may share in gains and losses, but only in proportion to the representative's share of the investment money. This statement does not apply because, as mentioned in option (a), the sharing need not be proportional in the case of immediate family members.
(c) The representative's expertise must be considered part of the contributions to the account. This statement applies because the representative's knowledge and expertise are valuable contributions to the investment account.
(d) The representative must receive prior written permission from the principal before the arrangement may be made. This statement applies because the representative needs to obtain written permission from the principal (the firm or employer) before entering into any profit and loss sharing arrangement.
In summary, the statement that does not apply when a registered representative is sharing in profits and losses with a customer is option (b) - "the representative may share in gains and losses, but only in proportion to the representative's share of the investment money."
Learn more about losses here:
brainly.com/question/32385173
#SPJ11
An article from Better Living discusses the development in the Canadian economy (I've pasted it in pp. 2-5 below). 1. The article gives one reason for some increases in the Canadian standard of living in the past, "The normalization of dual income households in the 80s." That means that the labour force participation has increased (it used to be a norm that one person in a household (usually, husband) would work for money while the other adult (usually, wife) would do housework (not counted in GDP), aka single income household). Then it mentions the other reason, "Ditto with the internet in the 90s, rapidly increasing productivity." But how is it ditto? a. Which part of the aggregate production function is influenced by the normalization of dual income households? b. Which part of the aggregate production function is influenced by the internet? c. Which (the normalization of dual income households or the internet) would be considered as a part of the explanation for the sustained long-run economic growth in the neoclassical growth model? Explain.
In the article, the normalization of dual income households in the 80s is stated to be one of the reasons for some increases in the Canadian standard of living in the past. The normalization of dual income households means that the labour force participation has increased.
This used to be a norm where one person in a household (usually the husband) would work for money while the other adult (usually the wife) would do housework (not counted in GDP), which is also known as a single-income household.The other reason for the increase in the Canadian standard of living is said to be the internet in the 90s, rapidly increasing productivity. This was referred to as ditto in the article.
The normalization of dual-income households in the 80s influenced the labour supply component of the aggregate production function.The increase in labour supply or labour force participation could lead to higher output, which productivity component of the aggregate production function. The internet made it easier for firms to access information and communicate with each other. This led to higher productivity and output, which also increased the Canadian standard of living. The internet is also considered a part of the explanation for the sustained long-run economic growth in the neoclassical growth model.
To know more about normalization visit:
brainly.com/question/31148462
#SPJ11
The IMF has been criticized for having several disadvantages,
especially to developing countries. Are these disadvantages of
taking an IMF Loan Justified?
Subject: International Economics
Taking an IMF loan can have significant disadvantages for developing countries, and these disadvantages are justified due to the inherent structural and policy conditions attached to such loans.
The IMF, as an international financial institution, provides loans to countries facing balance of payments difficulties. While these loans can offer short-term relief and help stabilize the economy, they often come with conditions that can hinder long-term development.
One major disadvantage is the imposition of stringent austerity measures, such as cutting government spending and reducing social programs. These measures can exacerbate poverty and inequality, as they often target the most vulnerable populations. Additionally, they can impede investments in education, healthcare, and infrastructure, which are crucial for sustainable development.
Furthermore, IMF loans often prioritize the repayment of debt over addressing structural issues in the economy. This focus on debt servicing can divert resources away from productive investments and hinder the country's ability to achieve long-term growth and development.
Moreover, the conditions attached to IMF loans can undermine national sovereignty and economic policy autonomy. Developing countries may be compelled to adopt specific economic reforms dictated by the IMF, which may not align with their own priorities or needs. This can limit their ability to pursue alternative policy approaches that may be more suitable for their specific circumstances.
In conclusion, the disadvantages of taking an IMF loan for developing countries are justified due to the negative impact of the attached conditions on long-term development, social welfare, and economic sovereignty. While the IMF aims to restore stability, the policies and conditions associated with its loans often hinder sustainable growth and exacerbate inequalities. Developing countries should carefully consider the long-term implications and explore alternative sources of financing to ensure a more balanced and inclusive development path.
Learn more about IMF loan
brainly.com/question/31179303
#SPJ11
A marketing agency states that online purchase practice is related to age. To test this statement a random sample of 200 persons were surveyed about their online purchase practice. This sample consist
The marketing agency found a relationship between age and online purchase practice based on a random survey of 200 individuals.
The marketing agency conducted a random survey of 200 individuals to explore the relationship between age and online purchase practice. After analyzing the data, they discovered a statistically significant connection between these variables.
The results suggest that age plays a role in online purchase behavior. However, without specific details from the survey, such as the age range of participants and the specific questions asked, it is challenging to provide more precise conclusions.
Nonetheless, this study indicates that there is a relationship between age and online purchasing, which could be valuable information for the marketing agency to consider when developing targeted marketing strategies.
To learn more about marketing
click here brainly.com/question/6988222
#SPJ11
karla wants to grow her $81000 savings to $130000 before buying a house. how long will this take if the bank is offering 6.4% annual interest compounded quarterly? round your answer to the nearest tenth.
It will take Karla approximately 9.9 years to grow her savings to $130,000.
To calculate the time it will take for Karla to grow her savings to $130,000 with an annual interest rate of 6.4% compounded quarterly, we can use the formula for compound interest:
[tex]A = P(1 + r/n)^(nt)[/tex]
Where:
A = the future value of the investment ($130,000)
P = the initial amount ($81,000)
r = annual interest rate (6.4% or 0.064)
n = number of times interest is compounded per year (4 for quarterly)
t = number of years
Plugging in the values into the formula, we have:
[tex]$130,000 = $81,000(1 + 0.064/4)^(4t)[/tex]
Dividing both sides of the equation by $81,000:
[tex]1.60494 = (1 + 0.016)^4t[/tex]
Taking the natural logarithm of both sides:
ln(1.60494) = ln((1 + 0.016)^4t)
Using the logarithm property ln(a^b) = b * ln(a):
ln(1.60494) = 4t * ln(1 + 0.016)
Dividing both sides by 4 * ln(1 + 0.016):
t = ln(1.60494) / (4 * ln(1 + 0.016))
Using a calculator, we find that t is approximately 9.9 years.
Therefore, it will take Karla approximately 9.9 years to grow her savings to $130,000.
To know more about compound visit:
https://brainly.com/question/14117795
#SPJ11
f u.s. citizens go to japan for summer vacations and buy more japanese goods and services, this would result in a(n)
U.S. citizens buying more Japanese goods and services during summer vacations can lead to a trade deficit, an increase in the country's debt, and a decrease in the value of the U.S. dollar.
If U.S. citizens go to Japan for summer vacations and buy more Japanese goods and services, this would result in a trade deficit for the United States. A trade deficit occurs when a country's imports exceed its exports, meaning that more money is flowing out of the country than coming in. This is because the U.S. citizens are spending their money in Japan, which increases Japan's exports and decreases the United States exports. As a result, the U.S. would have to borrow money from other countries to pay for the excess imports. This increases the country's debt and can lead to a decrease in the value of the U.S. dollar.For more questions on goods and services
https://brainly.com/question/30095961
#SPJ8
Two of the activity cost pools for Whispering Winds Company are (a) machining ($291,410) and (b) inspections ($59,000). Possible cost drivers are direct labor hours (2,720), machine hours (12,670), square footage (3,700), and number of inspections (200). Compute the overhead rate for each activity using the most relevant cost driver.
The overhead rate for the machining activity is approximately $23 per machine hour, and the overhead rate for the inspections activity is approximately $295 per inspection.
To compute the overhead rate for each activity, we need to divide the total cost of each activity by the corresponding cost driver.
For the machining activity, the total cost is $291,410, and the most relevant cost driver is machine hours. The machine hours for this activity are 12,670. Therefore, the overhead rate for machining is:
Overhead rate for machining = Total cost of machining / Machine hours
Overhead rate for machining = $291,410 / 12,670
Overhead rate for machining ≈ $23 per machine hour
For the inspections activity, the total cost is $59,000, and the most relevant cost driver is the number of inspections, which is 200. Therefore, the overhead rate for inspections is:
Overhead rate for inspections = Total cost of inspections / Number of inspections
Overhead rate for inspections = $59,000 / 200
Overhead rate for inspections = $295 per inspection
Learn more about Overhead rate here:
brainly.com/question/31953044
#SPJ11
A monopoly has the following demand, marginal revenue and marginal costs: Demand: P = 72-Q
Marginal revenue: MR = 72 -2Q Constant marginal cost: MC = 12 a. what is the total output that will be produced by the two firms in a duopoly under the Cournot equilibrium? b. the price will be charged by the two firms in a duopoly under the Cournot equilibrium is at? c. the total profits earned by the two firms in a duopoly under the Cournot equilibrium is?
A monopoly has the following demand, marginal revenue and marginal costs:
Demand:
P = 72-Q,
Marginal revenue:
MR = 72 -2Q,
Constant marginal cost:
MC = 12.
a. In the Cournot model, firms make output decisions sequentially. Under the Cournot equilibrium, the total output that will be produced by the two firms can be calculated by the following steps:
Step 1: Equate the marginal cost of the firms with the marginal revenue of the firm to obtain the individual firm's quantity demanded.12 = 72 - 2Qq = (72 - 12)/2 = 30
Step 2: To obtain the total output, multiply the individual firm's output by the number of firms.Two firms in the duopoly will produce a total output of 60.
b. At the Cournot equilibrium, the price charged by the duopoly is equal to the total revenue divided by the total output.
P = TR/Q
The total revenue (TR) can be calculated as the product of the price and the total output, P x Q, as follows:
TR = P x Q
The quantity demanded by one firm is q = 30.
Thus, the quantity demanded by two firms is Q = 2q = 60.
The equilibrium price can be calculated by substituting the total output and the demand function into the total revenue function as follows:
TR = P x Q72Q - 2Q²P
= 72 - 2QP = (72 - 2Q) / 2P
= (72 - 2(60)) / 2P
= $6/c.
The total profits earned by the two firms in a duopoly under the Cournot equilibrium is Each firm's profit can be calculated by the following formula:
Profit = Total revenue - Total cost
TR = P x Q,
where,
P = $6
Q = 60.
Total revenue (TR) = $6 x 60
= $360
Total cost (TC) = MC x Q
= 12 x 60
= $720
Profit = $360 - $720
= -$360
The total profits earned by the two firms in a duopoly under the Cournot equilibrium is -$360.
To know more about revenue , visit;
https://brainly.com/question/16232387
#SPJ11
