You have two roommates who invest in the stock market 7aJOne roommate says she buys shares only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earning ratio of these companies compares to the price-earnings ratio of these companies compares to the price-earnings ratio of other companies?What might be the disadvantage of buying shares in these companies? b) Another roommate says she only buys shares In companles that are cheap ,whlch she measures by a low price-earnings ratlo.How do you suppose the earnings prospects of these companles compare to those of other companles? What mlght be the disadvantage of buylng shares In these companles?

You have two roommates who invest in the stock market 7aJOne roommate says she buys shares only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earning ratio of these companies compares to the price-earnings ratio of these companies compares to the price-earnings ratio of other companies?What might be the disadvantage of buying shares in these companies? b) Another roommate says she only buys shares In companles that are cheap ,whlch she measures by a low price-earnings ratlo.How do you suppose the earnings prospects of these companles compare to those of other companles? What mlght be the disadvantage of buylng shares In these companles?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter12: Monopoly

Section: Chapter Questions

Problem 5DQ

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For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of $14 million, and Lucky Bird will make a profit of $3 million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both profit- maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of $ advertise. million if Full Coop advertises and a profit of $ million if Full Coop does not If Lucky Bird chooses not to advertise, it will earn a profit of $ not advertise. million if Full Coop advertises and a profit of $ million if Full Coop does S If Full Coop advertises, Lucky Bird makes a higher profit if it chooses If Full Coop doesn't advertise, Lucky Bird makes a higher profit if it chooses Suppose that both firms start off by deciding not to advertise. If the firms act independently, what strategies will they end up choosing? Both firms will choose not to advertise. O Lucky Bird will choose not to…
5- A manufacturer of doors, windows, and cabinets writes her yearly profit (in thousands of dollars) for each category in 248 a vector as: P= 319 632 40 30 Her fixed costs of production can be described by the vector:C- 60 What would her incomebif increasing it threefold would cause her profit to be fice times as arger 513,02 421; 623 427 72 907: 03 542 513,02 007;23 542 542: 3 007 421: 23 513
Please no written by hand and no emage
Would Yolanda Diaz have been as successful if she hadstarted her company right out of college, rather than waiting until she’d had a decade of corporate experience? Whyor why not?
onomics 1B Jan22 Y1 S2 The decision taken by the South African government to sell its majority stake in South African Airways is an example of... O A. Nationalisation O B. Privatisation O C. Commercialisation OD. Industrialisation Previous page D
K DOJ and FTC use the Hertindahl-Hirschman Index as a measure of concentration. How is this calculated? By O A. adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry. OB. determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreig OC. squaring the four - firm concentration ratio of the industry and dividing this number by the total number of firms in the industry. D. squaring the market shares of each firm in an industry and then adding up the values of the squares.
4:11 ll 5GE A bartleby.com – Private 3. Profit maximization using total cost and total revenue curves Suppose Dmitri runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $25 per frying pan. 3. Profit maximization using total cost and total revenue curves Suppose Dmitri runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $25 per frying pan. The following graph shows Dmitri's total cost curve. Lse the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Drmitri produces. 200 175 Tatal Revenue 150 Tatal Cost 125 Profit 100 75 50 -25 QUANTITY (Frying pans) Calculate Dmitri's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following graph. Use the blue…
7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P1 = 520 – 3Q1 P, = 720 – 4Q2 - TC = 100Q1 + 120Q2 + 4Q1Q2 What is the maximum profit the firm could make? O 24300 O 24800 25300 25800 26500 O0000
The firm Old Tyme Bakery generates $191,000.00 of revenue in a market that generates $584,000.00 of revenue. What, in a percentage, is Old Tyme Bakery's share of their market? (Include the % sign to your answ swer)
For each scenario in the following table, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure.
PLEASE TYPE Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.