Monopoly Practice Quiz Directions-Place a piece of paper on your screen to cover the answers as you quiz yourself The nondiscriminating monopolist's demand curve: A) is less elastic than a purely competitive firm's demand curve. B) is perfectly elastic. C) coincides with its marginal revenue curve. D) is perfectly inelastic. Answer: A If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue: A) may be either greater or less than $35.
Can you explain the differences and what they might be due to? The average performance of DFA 9-10 fund excess crsp 9-10 index, but slightly lower than s&p500 index. It means the portfolio is diversified to eliminate unsystematic risk, but tracking error is also exist.The reason of the tiny difference may be timing or security selection. Can you explain the differences and what they might be due to? The average performance of DFA large company value fund has very small difference with crsp cap decile #1.
The LM Curve will see a shift to the left and decrease the value of "Y" if the IR is higher than the ER of the market. The GDP is increasing in value and there will be an increase of savings.. If the IR was below the equilibrium, the opposite of the previously stated would occur. The LM Curve would see a shift to the right, therefore increasing the value of "Y". The GDP value would then decrease, due to the move from Point A to C, and increase employment which would decrease savings.
D) All of the above. E) None of the above. Answer: ___ 2) As the proportion of labor contracts with wage indexation increases, we would expect that: A) nominal wages will become more sensitive to changes in unemployment. B) a reduction in unemployment will have a smaller effect on inflation. C) the natural rate of unemployment will decrease.
The bid-ask spread is also a cost to the dealer. Reducing the bid-ask spread would make prices more competitive and also lower costs. Section 2 Strategy # Description 15 Better .02 Match Depth All Full No Inv MgmtBid price is 0.02 more than the other dealers bid price. Ask price is 0.02 less than the other dealers ask price. 16 Inventory Management in Depth Cutoffs = 30 When the cum.
This is an effect of a lower opportunity cost as the overall cost associated with borrowing has decreased and the marginal benefit of saving has increased, meaning consumers will receive more of a benefit if they purchase goods on credit based agreements opposed to saving, leading to an increase in the amount of credit transactions. This leads to consumer expenditure increasing significantly, meaning more goods are being consumed. Therefore, as consumer expenditure is a component of the aggregate demand formulae an increase in consumption would thereby lead to an increase in aggregate demand. However that said, an increase in consumption largely depends on the consumers’ marginal propensity to consume (MPC) and the overall confidence of consumers. Therefore, if MPC and consumer confidence is at a low, consumers will spend less and save more therefore resulting in a decrease in total consumption levels.
Another different objective a firm could have could be to revenue maximise. Revenue maximisation occurs when marginal revenue equals zero (MR=0). At this point revenue is being maximised as every unit produced until marginal revenue equal 0 is adding a certain amount of extra revenue to the total revenue. After the point MR=0 every extra unit produced has a negative value of marginal revenue therefore each unit produced after MR=0 will decrease total revenue and if a firms total revenue decrease their profits may
The cash flows are in real terms (and so do not increase) while the discounting is at nominal rate (which is higher due to inflation consideration). Thus it if the NPV turns out to be negative, the project may not be undertaken, which would not be correct since real cash flows are discounted at nominal rate. b. It may not be appropriate since different elements may have different inflation rates. But the impact may not be very significant even if an average rate is taken.
It can be measured and presented graphically. A gini coefficient can be derived from and the higher the gini index of an economy, the less equal income/wealth is distributed within it. Gini index is another measurement of distribution of income and can be shown in a Lorenz Curve. Again, a low gini-coefficient indicates an equal income/wealth distribution within an economy and vice versa. An equal distribution of income/wealth in an economy can mean everyone’s better off or worse off.
Precedents usually yield higher valuations than trading comps because a buyer must pay shareholders more than the current trading price to acquire a company. This is referred to as the control premium (use 20 percent as a 31 Customized for: JJ (jchen59@wisc.edu) Vault Guide to Private Equity and Hedge Fund Interviews Finance benchmark). If the buyer believes it can achieve synergies with the merger, then the buyer may pay more. This is known as the synergy premium. Between LBOs and DCFs, the DCF should have a higher value because the required IRR (cost of equity) of an LBO should be higher than