Which one of the following statements is correct?
A. Pro forma statements must assume that no new equity is issued.
B. Pro forma statements are projections, not guarantees.
C. Pro forma statements are limited to a balance sheet and income statement.
Answers
The correct statement will be; Pro forma statements are the projections, not guarantees. Option B is correct.
Pro forma statements are financial statements that are based on projected or anticipated figures rather than historical data. They are used to estimate and forecast future financial performance. Pro forma statements can include various components such as the balance sheet, income statement, and cash flow statement.
Regarding statement A, it is not necessarily true that pro forma statements must assume that no new equity is issued. Pro forma statements can incorporate assumptions about various sources of funding, including the issuance of new equity. It depends on the specific circumstances and objectives of the pro forma analysis.
Regarding statement C, it is not true that pro forma statements are limited to a balance sheet and income statement. While these two statements are commonly included in pro forma analysis, pro forma statements can also include a cash flow statement, statement of retained earnings, and other supplementary information depending on the specific needs of the analysis.
Hence, B. is the correct option.
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Related Questions
it is not necessary to do research on a company/organization/position before conducting an informational interview with the company/organization. true or false
Answers
It is false that it is not necessary to do research on a company/organization/position before conducting an informational interview with them.
Does conducting an informational interview require prior research?Researching a company, organization, or position before conducting an informational interview is crucial for several reasons. Firstly, it demonstrates your interest and enthusiasm for the opportunity. It allows you to gather relevant information about the company's background, values, products or services, and recent developments. This knowledge enables you to ask thoughtful questions during the interview and engage in meaningful conversation, showcasing your preparedness and dedication.
Additionally, conducting research helps you tailor your questions and responses to align with the company's goals and culture, making a positive impression on the interviewer. Overall, thorough research before an informational interview maximizes your chances of making a lasting impact and creating meaningful connections within the organization.
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
Answers
Answer:
see. I hope it's helpful for you lolExplanation:
i need friend lol can you my friend
the logistics process of recycling or disposing of returns from customers or from resellers is known as
Answers
The logistics process of recycling or disposing of returns from customers or from resellers is known as reverse logistics.
What is the reverse logistics process?Reverse logistics, as it is commonly known, is the movement of commodities away from their usual final location in order to increase their value or ensure correct disposal. The management and sale of excess inventory or raw materials, as well as the delivery of rented machinery, equipment, and other hardware back to the leasing company, are all included in reverse logistics. Another name for it is returned.
Every e-commerce fulfillment operation needs management to be successful. An order's return procedure is known as reverse logistics. Moving the product back to its place of origin once it leaves the client is known as this process. Reverse logistics, in essence, is the handling or process of an item after the initial sale.
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What does a balanced lifestyle look like? choose a job you would like to have and describe how you could keep your life balanced while performing your duties and responsibilities well.
Answers
Balance life is the ability to manage one's life effectively, given attention to all that is needed.
What is balance lifestyle?Balanced lifestyle occurs when an individual is able to manage all aspect of life without affecting each other.
The individual is able to work effectively and still have a good time with his or her family.
An individual with a personal business can have a flexible schedule to accommodate all that matters to his lifestyle.
Therefore, Balance life is the ability to manage one's life effectively, given attention to all that is needed.
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If I wanted to buy one of 2 items, a bike or a new TV, and after
consideration of my need to get exercise and fresh air, I chose to buy
the bike. Then, my opportunity cost would be the TV.
True
O False
Answers
Suppose that banks desire to hold no excess reserves the reserve ratio is 5 percent and a bank receives a new deposit of $1,000. this bank:_______
Answers
When a bank receives a new deposit of $1,000 and desires to hold no excess reserves with a reserve ratio of 5 percent, the bank will lend out the entire deposit.
The reserve ratio is the percentage of deposits that banks are required to hold as reserves. In this case, the reserve ratio is 5 percent, meaning that banks must keep 5 percent of their deposits as reserves and can lend out the remaining amount. When the bank receives a new deposit of $1,000, it will hold 5 percent of this deposit as required reserves. Since the bank desires to hold no excess reserves, it will lend out the remaining 95 percent of the deposit.
Therefore, the bank will lend out $950 ($1,000 - 5% of $1,000) to borrowers, increasing the money supply in the economy. The borrowers can then use this loan to make purchases or investments, stimulating economic activity. Hence, when a bank receives a new deposit of $1,000 and desires to hold no excess reserves with a reserve ratio of 5 percent, the bank will lend out the entire deposit, which in this case is $950.
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Factors affecting capital structure decisions In making capital structure decisions, financial managers must anticipate the Common fears and desires, as well as the conflicting interests and concerns, of the firm's creditors and shareholders. This requires managers to recognize and manage the trade-offs associated with these two financing constituencies. Ideally, financial managers should consider a variety of factors when establishing or changing a firm's capital structure. While the ultimate objective is the maximization of their shareholders' wealth, more immediate operational criteria include the market perceptions of the consequences of the manager's decisions on the firm's long-term viability and solvency, riskiness, and ability to generate cash flows when needed. Review the following two statements, and indicate which one is true and why. Statement 1 Bondholders and bond-rating agencies rarely consider the provisions of the firm's existing indenture agreements and rarely impose additional credit limitations on new sources of debt or preferred stock financing. Statement 2 The market tends to punish firms whose performance and attributes differ significantly from their industry standards. Statement _____is true because: Financial analysts, rating agencies, investors, and creditors tend to base their expectations of firm condition and performance on industry averages and standards, unless the deviation can be explained and convincingly justified by the firm's managers. Bondholders don't have to worry about incurring financial distress costs through the actions and decisions of management.
Answers
statement-2 is true because financial analysts, rating agencies, investors, and creditors tend to base their expectations of firm condition and performance on industry averages and standards. If a firm's performance and attributes differ significantly from their industry standards, the market tends to punish them.
This is because the market perceives these firms as riskier and less stable, which can result in a decrease in the firm's stock price and an increase in the cost of capital. Therefore, financial managers should consider industry standards when establishing or changing a firm's capital structure to avoid market punishment. Statement 1 is false because bondholders and bond-rating agencies often consider the provisions of the firm's existing indenture agreements and impose additional credit limitations on new sources of debt or preferred stock financing to protect their investments.
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A Las Vegas hotel want to provide to bear experience for a rep for its rapidly growing custom made base from China at the hotel can best do this by hiring
Answers
Answer:
Brian, a Mandarin interpreter who loves to interact with groups of all sizes.
Explanation:
In the context, a hotel in Las Vegas wants to give to experience for a representative for the increasingly growing customs which is made base from country China. The hotel can best do this by hiring Brian who is a Mandarin interpreter and he loves to meet and to interact with all size of people.
He can better able to facilitate the requirements of the travelers from China in a broader sense. Brian can allow the travelers less fluent in English speaking to make advantage of the available features at the hotel and also the amenities that the hotel offers. He bridges the language gaps between the hotel and the Chinese travelers.
Chapter 2 Mastery Problem
The T –
Hassan Rahim won a concession to rent bicycles in the local park during the summer. During the month of June, Hassan completed the following transactions for his bicycle rental business:
Chart of Accounts
Cash
Hassan Rahim Capital
Accounts Receivable
Hassan Rahim, Withdrawals
Supplies
Rental Income
Shed
Wages Expense
Bicycles
Maintenance Expense
Accounts Payable
Repair Expense
Concession Fee Expense
June
2
Began business by placing $7,200 in a business checking account.
3
Purchased supplies on account, $150
4
Purchased 10 Bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in thirty days.
5
Purchased for cash a small shed to hold the bicycles and to use for other operations, $2,900
6
Paid cash for shipping and installation costs (considered as an addition to the cost of the shed) to place the shed at the park entrance, $400.
8
Received cash of $470 for rentals during the first week of operation.
13
Hired a part-time assistant to help out on weekends at $7.50 per hour
14
Paid a maintenance person to clean the grounds, $75.
15
Received cash, $500, for rentals during the second week of operation.
16
Paid the assistant for a weekend’s work, $150.
20
Paid for the supplies purchased on June 3, $150.
21
Paid repair bill on bicycles, $55.
22
Received cash for rentals during the third week of operation, $550.
23
Paid the assistant for a weekend’s work, $150.
26
Billed a company for bicycle rentals for an employee outing, $110
27
Paid the fee for June to the Park District for the right to the bicycle concession, $100.
28
Received cash for rentals during the week, $410.
29
Paid the assistant for a weekend’s work, $150.
30
Transferred $500 to personal checking account.
Answers
Answer:
27.
Explanation:
how does depreciation going up by $10 affect all the statements?
Answers
An increase in depreciation expense by $10 will decrease net income and retained earnings by $10. It will also reduce the carrying value of the related asset on the balance sheet by $10. The cash flow statement remains unaffected as depreciation is a non-cash expense.
An increase in depreciation expense by $10 will have specific effects on the financial statements:
1. Income Statement: The increase in depreciation expense will reduce the net income by $10, leading to a lower profit or potentially a net loss.
2. Cash Flow Statement: The increase in depreciation expense does not directly impact cash flow as it is a non-cash expense. Therefore, there is no change in cash flow from operations.
3. Balance Sheet: The increase in depreciation expense reduces the value of the corresponding asset on the balance sheet. It will result in a decrease in the carrying value of the asset and a decrease in total assets by $10. The retained earnings (equity) will also decrease by $10 due to the reduction in net income.
Overall, the increase in depreciation expense reduces the profitability reflected in the income statement, decreases the value of the related asset on the balance sheet, and lowers the retained earnings on the equity side. It is important to note that these effects depend on the specific accounting policies and the impact on other line items in the financial statements may vary.
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If Cooper does not need to access this account for 25 years, how much will be in the account then?
Answers
Answer:
29,093.01 Dollars
Explanation:
is a measurement of standard of living that includes education and
clean running water.
A. Financial wealth
B. Access to necessities
C. Income
D. Material wealth
Answers
2. If changes happen during September or October, which expenses will you be able to change most easily? Give an example of how you could make a change. (5 points)
Answers
The correct answer to this open question is the following.
Although the question does not provide any context, references, or give options, we can say that if changes happen during September or October, the expenses you will be able to change most easily are according with the provisions projected in the annual plan, the budget, compared with the monthly expenses.
That is why a company has to elaborate on a good financial plan and overseeing the projections and true sales of the marketing and sales plan. This is important to take the proper control of expenses and revenues. Depending on the volume of sales during September and October, you can decide what kind of changes or adjustments to make in the following months.
Answer:
I would be able to change the variable expenses most easily. Such as food, clothing, and discretionary spending.
I could make the change by
Budgeting in October:
food from spending -$70 back to -$60
cut clothes off since I bought some already from -$40 to $0
budget my discretionary spending from -$60 back to -$40
This would increase my savings to $230
For each of the following companies, specify whether each company would be more likely to use job costing or process costing.
A. Janitorial services company
B. Soup manufacturer
C. Commercial plumbing contractor
D. Toothpaste manufacturer
E. Catering service
F. Shipbuilder
G. Company providing Web design services
H. Medical practice of six doctors and four physician assistants
I. Soft drink bottler
J. Movie studio
K. Plastic bottle manufacturer
L. Architect
M. Temporary staffing agency
N. Oil refinery.
Answers
Job costing is a method for estimating the costs of specific tasks performed in accordance with the client's requirements or instructions.
a. Janitorial services company : Job Costing
b. Soup manufacturer :Process Costing
c. Commercial plumbing contractor : Job Costing
d. Toothpaste manufacturer : Process Costing
e. Catering service :Job Costing
f. Shipbuilder : Job Costing
g. Job Costing is a company that offers web design services.
h. Medical practice of six doctors and four physician assistants : Job Costing
i. Soft drink bottler : Process Costing
J. Movie studio : Job Costing
k. Plastic bottle manufacturer : Process Costing
l. Architect : Job Costing
m. Temporary staffing agency : Job Costing
n. Oil refinery : Process Costing
Costing the process: Process costing is a method of costing used primarily in manufacturing, where units are continuously mass-produced through one or more processes. It is used to determine the cost of goods that require multiple processes to become finished goods. The production of chemicals, processed food, and erasers are all examples of this.
Why does process costing work?When similar products are produced in large quantities and the costs of each unit of output cannot be distinguished, process costing is utilized. To put it another way, it is assumed that the price of each product produced is the same as the price of each other product.
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hurry! #3
What soft skills should a customer service representative use when resolving customer issues?
negotiation and bartering
control and manipulation
empathy and humor
speed and knowledge
Answers
Answer:
empathy and humor
a product owner writes a user story for an item in a sprint. they ensure all the parts of the user story are complete and ready to hand off to the quality analysis team. which of the i.n.v.e.s.t. story writing criteria is the product owner trying to fulfill?
Answers
The INVEST framework is a set of story-writing guidelines that assists product owners in writing effective user stories. Each letter in the acronym INVEST represents a crucial aspect of a high-quality story.
The five criteria are as follows: Independent, Negotiable, Valuable, Estimable, Small, and Testable. By complying with these criteria, product owners can guarantee that the development team can comprehend the user stories' objectives and deliver them within the predetermined timeline.
According to the given scenario, the product owner is attempting to meet the criteria of the "S" in INVEST, which stands for "Small."
When a product owner writes a user story for an item in a sprint, they must make certain that all of the parts of the user story are complete and ready to hand over to the quality analysis team.
The story should be concise and should not incorporate irrelevant information. The goal is to create smaller, more precise stories that can be quickly completed, validated, and tested.
It enables the development team to achieve a better understanding of the task and to complete it more efficiently.
Because product owners are responsible for the success of a sprint, they must ensure that user stories are written correctly and meet all of the criteria of the INVEST framework.
Small stories can lead to rapid completion and a more efficient project plan. Therefore, the product owner should make sure that the story is small, concise, and ready for the quality analysis team to work on.
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define finiancial institution
Answers
Answer:
A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.
Answer:
Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions:[1][2]
Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;
Contractual institutions – insurance companies and pension funds
Investment institutions – investment banks, underwriters, brokerage firms
According to the box "Outline of a Comprehensive Business Plan," it is reasonable to assume that a quality business plan will take
Multiple Choice
O
O
O
at least six months
over a year
around one or two weeks
about two months
to generate. T
Answers
As stated in the box "Outline of a Comprehensive Business Plan," a quality business plan should take around two months to generate. Thus, Option D is correct.
A quality business plan typically takes about two months to generate, as it requires careful research, analysis, and planning of various aspects of the business, including its market, competition, financial projections, and management structure. However, the time required to develop a business plan can vary depending on the complexity of the business, the availability of information, and the resources available to the entrepreneur or team developing the plan.
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Epsilon Co. can produce a unit of product for the following costs:
Direct material $8
Direct labor $24
Overhead $40
Total costs per unit $72
An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:
A. Buy since the relevant cost to make it is $72.
B. Make since the relevant cost to make it is $56.
C. Buy since the relevant cost to make it is $48.
D. Make since the relevant cost to make it is $48.
E. Buy since the relevant cost to make it is $56.
Answers
Epsilon should choose to make the product since the relevant cost to make it is $48, which is lower than the relevant cost to buy it from the supplier. Option D is correct.
To determine the best course of action, we need to compare the relevant costs of making the product versus buying it from the outside supplier.
The relevant costs to make the product include direct material, direct labor, and a portion of the overhead. The relevant cost to buy the product includes the purchase price from the supplier plus a portion of the overhead.
Given the information provided, let's calculate the relevant costs for each option:
Option A:
Buy since the relevant cost to make it is $72.
Relevant cost to buy = $60 + (40% * $40) = $60 + $16 = $76
Option B:
Make since the relevant cost to make it is $56.
Relevant cost to make = $72
Option C:
Buy since the relevant cost to make it is $48.
Relevant cost to buy = $60 + (40% * $40) = $60 + $16 = $76
Option D:
Make since the relevant cost to make it is $48.
Relevant cost to make = $72
Option E:
Buy since the relevant cost to make it is $56.
Relevant cost to buy = $60 + (40% * $40) = $60 + $16 = $76
Based on the calculations, we can see that the relevant cost to buy the product is $76 for options A, C, and E. On the other hand, the relevant cost to make the product is $72 for options B and D.
Therefore, the correct answer is D.
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Customers arrive at a manufacture system following a Poisson process with parameter λ to demand just one product. The machine starts to produce a product only when a demand arrives, with a deterministic production time T. During the production, the customer waits in the room, which results in a waiting cost T2. When the room is occupied by a waiting customer, the subsequent arrived customers are lost. The machine becomes idle when the waiting customer leaves the room, and is kept idle till to the next demand arrives, at which the machine starts to produce a product again. Suppose the production cost of a product is C. Determine the optimal T to minimize the expected long-run average total cost of the system.
Answers
The cost of production, the cost of waiting, and the cost of lost clients make up the overall cost. Let's use the letters C, T2, and L to represent the costs of manufacturing, waiting, and clientele lost.
We must take into account all of the costs associated with the system in order to calculate the ideal T to minimise the anticipated long-run average total cost of the system. The cost of production, the cost of waiting, and the cost of lost clients make up the overall cost. Let's use the letters C, T2, and L to represent the costs of manufacturing, waiting, and clientele lost. When a consumer arrives when the room is already occupied, it costs money since potential sales are lost. The sum of the anticipated costs of production, waiting, and clientele lost can be used to calculate the anticipated long-run average total cost.In order to reduce the anticipated long-run average total cost, we must In order to reduce the total of these costs, identify the ideal production time T. This can be done by weighing the costs of waiting versus the cost of lost clients .We may express the issue as an optimisation problem and solve it to identify the ideal value of T that minimises the anticipated long-run average total cost of the system by knowing the arrival rate, cost of lost consumers L, and production cost.It's crucial to remember that this optimisation challenge takes into account a deterministic manufacturing time and a Poisson arrival procedure for consumers. To acquire an accurate answer, the particular values of, C, and L must be given. Additionally, there are real-world limitations and considerations like customer The decision-making process may also need to take into account customer satisfaction and service level agreements.
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I need help to determine my grade
Answers
Answer:
Outstanding Checks should be subtracted from the bank side of the reconciliation because they were subtracted from the book balance when the checks were written.
Explanation:
At what rate per cent per annum will 4000 yield an interest of 410 in 2 years?
Answers
Answer:
5%
Explanation:
The applicable formula is A = P( 1 + r) ^ n
where A= amount: P is the principal, r, interest rate, n time
In this case,
A = principal + interest = Rs 410 { Rs 4000 + Rs410}
P= Rs 4000
r= ?
n= 2
r is?
4410 = 4000(1 + r) ^2
(1 + i)^ 2 = 4410/4000
(1 + i)^ 2 = 1.1025
1 + i = √1.1025
1 + i = 1.05
i = 1.05 - 1
i = 0.05
0.05 × 100 = 5%
If your gross pay is $1500 each pay period, and you are paid semimonthly, what is your yearly gross pay?
Answers
Answer:
$39,000
Explanation:
Ideally, we'd know if every pay period is 2 weeks, but that's pretty standard. They say semimonthly because if you look at a calendar over a year, there are a couple of months where you will have 3 paychecks.
So. 52 weeks/year, divided into 2-week pay periods = 26 pay periods/year.
26 x 1,500 = 39,000
Please let me know if you have any questions about this.
global expansion: a. does not involve selling existing products to new markets in different countries. b. is not feasible for service-based firms. c. can enable companies to increase their profitability and grow their profits more rapidly. d. is feasible only for non-technology-based companies. e. has significantly decreased in the recent years as the industry barriers are now higher.
Answers
Global expansion c. can enable companies to increase their profitability and grow their profits more rapidly.
What is global expansion?Global expansion can ber described as the process by which companies from one market this can be raerded as their home market and expand operations into a foreign market .
It should be noted that the Global expansion posses the potential to raise your business to new heights however it position the business up to international markets, global talent, and most importantly, opportunities for growth and bringing growth to the company and its services globally is a strategic business move.
Therefore, option C is correct.
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To pay for your education, you've taken out $25,000 in student loans. If you make monthly payments over 15 years at 7 percent compounded monthly, how much are your monthly student loan payments?
Answers
The amount of monthly student loan payment is $290.55.
What is student loan ?A student loan is a type of loan that is intended to assist students in paying for post-secondary education and associated fees such as tuition, books and supplies, and living expenses.
The monthly loan payment is calculated as:-
Loan amount = $25,000
Time = 15 years
Interest rate = 7% compounded monthly
Interest rate per period, r = 7% ÷ 12 = 0.583% = 0.00583
number of periods, n = 15 × 12 = 150 months
Now,
Loan amount = Monthly payments × [ { 1 - (1 + r )⁻ⁿ } ÷ r]
on substituting the respective values, we get
$29,000 = Monthly payments × [ { 1 - (1 + 0.00583 )^-150 } ÷ 0.00583]
or
$29,000 = Monthly payments × 99.811
or
Monthly payments = $290.55
Therefore, the monthly payment for the student loan is $290.55.
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A. Multiple Choice: Choose the correct 1. Many farmers may forget to check the troubleshooting section, which can cost them even more time out of the field. a. Not reading the Operator's Manual b. Improper Maintenance c. Poor electrical connection d. Overrunning machines capability e. Not replacing wom out when needed
Answers
Answer:
E.Not replacing whom out when Needed
A competitive firm maximizes profit by choosing the quantity at which.
Answers
Profit maximization can be achieved by a competitive corporation by choosing a quantity of output such that marginal revenue equals marginal cost.
How does a corporation maximize its profit?A corporation maximizes income via way of means of operating wherein marginal revenue equals marginal price. The corporation chooses quantity in order for that rate to equal marginal value so that it can maximize its profit.
Therefore, When the marginal revenue for an aggressive corporation equals the market rate, the firm maximizes its profit.
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______________ can arise from the estimation process or the stability of the project team. assumptions internal risks cost overruns external risks.
Answers
Internet risk can arise from the estimation process or the stability of the project team. assumptions internal risks cost overruns external risks.
What is Internet risk?Online risk is the exposure of an organization's internal resources as a result of using the Internet to do business.
Online risk exists for all businesses that conduct a portion of their operations online. Personal information, project data, and data produced by systems or procedures used by the company to conduct its business all fall under the category of vulnerable data.
Using techniques and resources from a risk management strategy, you can effectively manage online risk, prevent it from happening in the first place, and take action if it does. Aware of online risk, able to foresee how a data loss might affect their business operations, and able to create contingency plans are all crucial skills for IT professionals.
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When would it be a good idea to invest your money instead of putting it in a savings
account?
A. When you won't need the money for a long time.
B. When you want to put your money somewhere safe.
C. When you're looking to maintain the value of your money
with a little bit of growth.
D. None of the above
Answers
4. The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 - 49 The cost structures for the leader and the follower, respectively, are CLIQL) = 4,000QL and CF(QF) = 6,000QF (LO2, LO3) a. What is the follower's reaction function? b. Determine the equilibrium output level for both the leader and the follower. c. Determine the equilibrium market price. d. Determine the profits of the leader and the follower.
Answers
a) reaction function is QF = (8,000 - 0.5QL - 24.5P) / 49. b) equilibrium output level QF = 1,142.9. c) equilibrium market price is 9,571.4. d) profits is 4,114,286.
a. The follower's reaction function can be found by solving for QF in terms of QL. Since the leader will produce their output first, the follower will take this into account when making their decision. Thus, we can set the leader's output equal to QL and solve for QF: QL = (16,000 - 49(QL + QF)) / 2. Simplifying this equation gives the follower's reaction function: QF = (8,000 - 0.5QL - 24.5P) / 49.
b. To find the equilibrium output levels, we need to solve for QL and QF simultaneously. Using the follower's reaction function, we can substitute QF into the leader's profit-maximizing condition: MR = MC. The leader's marginal cost is CLIQL, so we have (16,000 - 49(QL + QF)) / 2 = 4,000QL. Solving for QL gives QL = 2,285.7. Using the follower's reaction function, we can then solve for QF: QF = 1,142.9.
c. The equilibrium market price is found by substituting the equilibrium output levels into the demand function: P = 16,000 - 49(QL + QF) = 9,571.4.
d. To find the profits of the leader and follower, we need to subtract their costs from their revenues. The leader's revenue is PQL = 21,942,857, and their cost is CLIQL = 9,142,857. Therefore, their profit is 12,800,000. The follower's revenue is PQF = 10,971,429, and their cost is CFQF = 6,857,143. Therefore, their profit is 4,114,286.
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