The fully allocated cost of a product is $ 10. If the price elasticity of demand for the product is 2, then the firm ' s optimal markup is
Question 11 A firm plans to raise $ 4 million by borrowing at an interest rate of 16 % and to raise $ 1 million by issuing common stock. The firm ' s stock has a beta coefficient of 2, the risk free interest rate is 6 %, the average rate of return on stocks is 9 %, and the marginal tax rate is 25 %. What is the firm ' s composite cost of capital?
Question 12
A firm that uses profits earned in one market to sell a product or service below its average variable cost in another market is engaged in
Question 13 In game theory, a dominant strategy refers to a choice
Question 14 Which of the following is a device that controls imports and generates government revenue?
Question 15